The U.S. Securities and Exchange Commission (SEC) has introduced new guidelines that clarify when certain DeFi front-ends and crypto trading interfaces may operate without registering as broker-dealers. The staff statement, published by the SEC’s Division of Trading and Markets, applies from April 13, 2026 and remains valid for five years unless amended earlier.
Definition and scope of covered user interfaces
Covered User Interfaces, as defined by the SEC, are software platforms that allow users to prepare and submit transactions involving crypto asset securities directly from self-custodial wallets. These platforms include DeFi front-ends, browser wallet extensions, and mobile applications focused on facilitating such transfers.
To meet the new conditions, these user interfaces must not route orders or make decisions on behalf of users. Instead, users should be able to set or adjust important parameters like transaction slippage and network (gas) fees independently.
The guidance requires that these services give users access to educational resources about customizing their transaction settings. This rule aims to empower users to manage settings in line with their risk preferences.
Additionally, the platforms must not recommend, solicit, or encourage users toward specific digital asset transactions. Any connection to an affiliated trading venue needs to be fully disclosed, with users having the same access terms as with unaffiliated venues.
For interfaces showing only one execution route, an option must be present to view alternatives. Interfaces displaying multiple routes must offer sorting tools that rely on objective factors like price or speed, and they cannot designate any route as the absolute “best” or “most reliable”.
Fee models, disclosures, and compliance measures
Service fees for covered DeFi interfaces are subject to strict limitations. Providers must implement a fixed fee, neutral across all transactions, and cannot accept payments from third parties, including order flow or external incentives.
Fee policies must appear transparently on the platform. Providers should post clear, conspicuous disclosures outlining their fees, cybersecurity policies, exposure to MEV-related risks, and any actual or potential conflicts of interest.
A mandatory disclaimer must notify users that the provider is not registered with or regulated by the SEC, in line with the latest guidance.
The SEC underlines that some activities remain outside the permitted safe harbor. These include holding customer funds, executing or settling trades, routing or accepting orders, and providing investment advice or specific recommendations.
To help demonstrate compliance, providers are encouraged to maintain internal records, policies, and procedures related to operations covered by the guidance. The SEC is also accepting public comments on these new rules, which may influence future regulatory direction.
