SEC Says Some Self-Custody Wallet Interfaces May Be Exempt From Broker Registration

The US Securities and Exchange Commission has clarified the regulatory scope for software interfaces that support crypto-asset securities transactions.

In a June 13 statement, the SEC’s Division of Trading and Markets said interfaces that support crypto-asset securities transactions directed by users themselves may not be subject to broker-dealer registration requirements if certain conditions are met.

The SEC said interfaces linked to self-custody wallets may be exempt from registration when they do not solicit specific crypto-asset transactions and do not provide opinions or recommendations on trade execution routes.

The agency said the position is a staff interpretation rather than a formal rulemaking, limiting its legal effect. It added that the guidance is intended to improve understanding of how federal securities laws apply to crypto-related activities.

The move is one of a series of interpretive guidelines issued since President Donald Trump took office in January 2025, and the market has viewed it as a partial easing of the regulatory stance.

SEC Commissioner Hester Peirce said the interpretation is helpful, but a more durable regulatory framework that reflects market conditions is still needed. Crypto assets are pushing the SEC to reconsider the scope of its securities-law interpretations, she added.

The SEC and the Commodity Futures Trading Commission also continue to face staffing shortages. The SEC currently has only three Republican commissioners out of five seats, while the CFTC has only one sitting commissioner, its chair.

Some members of Congress are discussing ways to set minimum staffing requirements for both agencies in connection with crypto market-structure legislation.