SEC Exempts 'Crypto Interface Providers' from Broker-Dealer Registration
SEC Exempts Crypto Interface Providers.
As part of its ongoing effort to deliver clarity on the application of federal securities laws to digital assets, the Security and Exchange Commission (SEC's) Division of Trading and Markets today issued a staff statement on when crypto interfaces can legally operate without needing to obtain broker-dealer registration.
GOOD NEWS.According to recently released SEC staff guidance, crypto “user interfaces” (like wallets or apps) can legally operate without needing to register as broker-dealers, provided that the interface operates strictly in a non-custodial capacity. Among other things, interface providers cannot provide objective commentary on the execution routes it offers, cannot solicit investors to engage in specific crypto asset securities transactions, and cannot negotiate the terms of their users' transactions.
Last month, the Commodity Futures Trading Commission (CFTC) issued a no-action letter in response to Phantom, clearing the self-custodial crypto wallet provider to facilitate regulated derivatives trades acting in a strictly frontend interface capacity without needing to register with the federal derivatives supervisor.
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SEC Exempts Crypto Interface Providers.
As part of its ongoing effort to deliver clarity on the application of federal securities laws to digital assets, the Security and Exchange Commission (SEC's) Division of Trading and Markets today issued a staff statement on when crypto interfaces can legally operate without needing to obtain broker-dealer registration.
GOOD NEWS.
According to recently released SEC staff guidance, crypto “user interfaces” (like wallets or apps) can legally operate without needing to register as broker-dealers, provided that the interface operates strictly in a non-custodial capacity. Among other things, interface providers cannot provide objective commentary on the execution routes it offers, cannot solicit investors to engage in specific crypto asset securities transactions, and cannot negotiate the terms of their users' transactions.
Last month, the Commodity Futures Trading Commission (CFTC) issued a no-action letter in response to Phantom, clearing the self-custodial crypto wallet provider to facilitate regulated derivatives trades acting in a strictly frontend interface capacity without needing to register with the federal derivatives supervisor.
News and Story lines by others we Aknowledge their Copywright.