SEC issues statement clarifying regulatory conditions for encrypted trading interfaces

The U.S. Securities and Exchange Commission (SEC)'s Department of Trading and Markets has issued a statement clarifying that certain user interfaces used to generate cryptocurrency securities trading instructions may be exempt from registration as brokers under certain conditions. These conditions include not actively soliciting transactions, not providing investment advice, not controlling or executing transactions, generating instructions based solely on objective parameters, and fully disclosing fee structures and related risks. The statement points out that such interfaces usually exist in the form of websites, plugins, or wallet applications, and exemptions do not apply to activities such as matching transactions and fund custody. The guidance will automatically expire five years after April 13, 2026.