Overview
- SEC’s Division of Trading and Markets said Monday it will not recommend enforcement against certain wallet‑linked user interfaces that meet strict limits on their role.
- To qualify, an interface must stay non‑custodial and user‑controlled, avoid routing or timing trades, and refrain from soliciting or recommending specific transactions.
- The relief does not cover software that takes or routes orders, negotiates terms, provides investment advice, handles assets, or executes or settles trades, leaving violators exposed to broker‑dealer rules.
- Providers must use fixed, route‑agnostic fees, disclose affiliations, conflicts, and cybersecurity practices, present routes using objective criteria like price or speed, and maintain policies to review connected venues.
- The staff statement applies to transactions in crypto asset securities through self‑custody wallets, lasts five years unless the Commission acts, and follows March SEC‑CFTC token taxonomy work and the SEC’s developing Reg Crypto plan as industry groups hail the clarity.