Lates News

The Securities and Exchange Commission (SEC) Trading and Markets Division has released a staff statement providing guidance on whether Covered User Interfaces used to generate instructions for trading in crypto asset securities need to register as brokers. The statement indicates that providers of such interfaces may not need to register as brokers under Section 15 of the Securities Exchange Act if certain conditions are met. These conditions include: not actively soliciting specific trades, not providing investment advice, not controlling or executing trades, only generating trade instructions based on objective parameters, and fully disclosing fee structures, potential conflicts of interest, and related risks to users. The SEC emphasizes that these interfaces typically exist in the form of websites, browser plugins, or wallet applications to convert user-set trade parameters into executable instructions on the blockchain while providing market data such as prices, paths, and fees. This exemption does not apply to activities such as matching trades, fund custody, order routing, or providing investment advice. The guidance is interim and will automatically expire five years from April 13, 2026, if no further action is taken. The aim is to provide a clearer regulatory framework for activities related to crypto asset securities and to continue seeking feedback from the market.