{"id":71072,"date":"2026-04-13T15:44:49","date_gmt":"2026-04-13T15:44:49","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/new-sec-guidance-targets-defi-interfaces-self-custodial-wallets-and-execution-routing-disclosures-regulation-bitcoin-news\/"},"modified":"2026-04-13T15:44:49","modified_gmt":"2026-04-13T15:44:49","slug":"new-sec-guidance-targets-defi-interfaces-self-custodial-wallets-and-execution-routing-disclosures-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/new-sec-guidance-targets-defi-interfaces-self-custodial-wallets-and-execution-routing-disclosures-regulation-bitcoin-news\/","title":{"rendered":"New SEC Guidance Targets DeFi Interfaces, Self-Custodial Wallets, and Execution Routing Disclosures \u2013 Regulation Bitcoin News"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>The SEC\u2019s Division of Trading and Markets issued guidance on April 13, 2026, allowing <span>crypto<\/span> UI providers to skip broker-dealer registration if 12 conditions are met.<\/li>\n<li>The statement, set to expire April 13, 2031, signals SEC intent to clarify federal securities law for <span>decentralized exchange<\/span> front-ends and self-custodial wallets.<\/li>\n<li>Covered User Interface Providers must disclose fees, MEV risks, and conflicts of interest or risk falling outside the SEC\u2019s no-action scope.<\/li>\n<\/ul>\n<h2>SEC Lets <span>Crypto<\/span> Interface Operators Skip Broker-Dealer Registration Under 12 Conditions<\/h2>\n<p>The <a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/staff-statement-regarding-broker-dealer-registration-certain-user-interfaces-utilized-prepare-staff-statement-regarding-broker-dealer-registration-certain-user-interfaces-utilized\" target=\"_blank\" rel=\"noopener noreferrer\">statement<\/a> targets what the <a href=\"https:\/\/news.bitcoin.com\/sec-and-cftc-fast-track-us-crypto-oversight-using-interpretive-rules-to-bypass-lengthy-rulemaking\/\">SEC<\/a> calls \u201cCovered User Interface Providers,\u201d a category that includes websites, browser extensions, and mobile apps designed to help users prepare and submit <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> asset securities transactions through <a href=\"https:\/\/news.bitcoin.com\/metamask-mastercard-roll-out-self-custodial-crypto-card-in-us\/\">self-custodial<\/a> wallets.<\/p>\n<p>These interfaces typically convert user-set transaction parameters, such as buy or sell direction, <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-trading-volume\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">volume<\/a>, asset type, and price range, into <a href=\"https:\/\/news.bitcoin.com\/broadridge-and-galaxy-pioneer-blockchain-proxy-voting-for-us-public-companies\/\">blockchain<\/a>-readable commands. They may also display market data, estimated <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-gas\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">gas<\/a> fees, and available execution routes. Providers generally charge a fixed percentage per transaction.<\/p>\n<p><\/p>\n<p>Under Section 15(a) of the Securities Exchange Act of 1934, any person in the business of effecting securities transactions for others is generally required to register as a broker. The SEC staff said in the statement that it will not object to a Covered User Interface Provider operating without that registration, provided the provider meets 12 specific conditions.<\/p>\n<p>Those conditions cover how interfaces handle user customization, fee structures, execution routing, affiliated trading venues, and disclosure obligations. The provider must allow users to adjust default transaction settings and provide educational materials to support those decisions. The provider cannot solicit users into specific <a href=\"https:\/\/news.bitcoin.com\/saudi-arabias-crypto-market-projected-to-reach-47-8-billion-by-2034\/\">crypto<\/a> securities transactions or offer investment advice.<\/p>\n<p>On routing, if an interface displays only one execution path, users must be able to view alternatives. If multiple routes appear, the interface must offer objective sorting tools, such as by price or speed, without labeling any route as the \u201cbest\u201d option.<\/p>\n<p>Compensation must be limited to a fixed charge applied consistently across products, routes, venues, and counterparties. The fee cannot vary based on which trading venue is selected or which asset is involved.<\/p>\n<p>Disclosure requirements are extensive. Providers must inform users that the operator is not registered with or regulated by the <a href=\"https:\/\/news.bitcoin.com\/sec-opens-proceedings-on-nyse-proposal-to-list-grayscale-crypto-etf-options\/\">SEC<\/a> in connection with the interface\u2019s operation. They must also disclose all fees and their calculation methods, conflicts of interest, <a href=\"https:\/\/news.bitcoin.com\/treasury-launches-cybersecurity-initiative-expanding-threat-intelligence-access-for-digital-asset-firms\/\">cybersecurity<\/a> policies, data protection practices related to maximal extractable value strategies, and details about every connected trading venue or <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-liquidity-pools\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity pool<\/a>.<\/p>\n<p>Any affiliated trading venues must be clearly identified, and the interface must connect to those venues on the same terms as any unaffiliated platform.<\/p>\n<p>The statement also lists activities that remove a provider from its scope entirely. Operators who negotiate transaction terms, hold user funds, execute or settle trades, process trade documentation, or take and route orders are not covered by the staff\u2019s no-action position.<\/p>\n<p>The SEC said maintaining policies, procedures, and internal records, including the use of onchain transaction data alongside private books, could help providers demonstrate they are operating within the statement\u2019s limits.<\/p>\n<p>The staff said it welcomes public comments. Submissions can be filed electronically at rule-comments@sec.gov with \u201cFile Number 4-894\u201d in the subject line. Absent any intervening action by the Commission, the statement will be considered withdrawn on April 13, 2031.<\/p>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/new-sec-guidance-targets-defi-interfaces-self-custodial-wallets-and-execution-routing-disclosures\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: The SEC\u2019s Division of Trading and Markets issued guidance on April 13, 2026, allowing crypto UI providers to skip broker-dealer registration if 12 conditions are met. The statement, set to expire April 13, 2031, signals SEC intent to clarify federal securities law for decentralized exchange front-ends [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":71073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71072"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=71072"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/71073"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=71072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=71072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=71072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}