The U.S. Securities and Exchange Commission (SEC) has indicated that certain cryptocurrency interfaces — including DeFi front-ends, wallet extensions, and applications — may not require broker-dealer registration under specific conditions.
According to the guidance, platforms must operate strictly as non-custodial interfaces, meaning they do not hold or control user funds, which remain under self-custody.
Additionally, these interfaces must refrain from offering investment advice or recommendations, and cannot direct, route, or execute user trades. Their role must remain limited to providing neutral access to decentralized protocols.
The SEC also emphasized that fee structures should be fixed and non-discretionary, with no dynamic pricing based on user behavior, transaction size, or market conditions.
Furthermore, platforms must not exercise any discretionary control over transactions or influence market activity in any form.
This clarification could provide a clearer regulatory pathway for DeFi developers and infrastructure providers, while maintaining boundaries between software interfaces and regulated financial intermediaries.