DeFi User Interfaces Can Now Trade Crypto Securities Without Broker Registration

DeFi user interfaces, including wallet apps and browser extensions, can now facilitate trades in crypto asset securities without registering as broker-dealers. This relief is available to 'Covered User Interfaces'—software that converts user inputs into executable code for self-custodial wallets without handling custody, routing orders, or offering investment advice. The SEC's Division of Trading and Markets staff statement targets these specific tools. To qualify, providers must charge fixed neutral fees agnostic to products or venues and avoid soliciting specific trades or endorsements such as 'best price'. They must also provide clear disclosures of conflicts and cybersecurity measures and objectively vet connected trading systems for liquidity and security. This non-binding interim measure is effective for five years unless withdrawn.