C rypto asset securities user interface providers may now operate without registering as broker-dealers under Section 15(a) of the Exchange Act, provided they adhere to a specific set of operational constraints. These providers must permit users to customize any default transaction parameters and provide educational materials on how to set those parameters. They are forbidden from soliciting investors to engage in specific transactions.
Related Brief 1d ago
securities law 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 This non-binding interim measure is effective for five years unless withdrawn.
If an interface displays only one potential execution route, the provider must allow the user to view additional routes. When multiple routes are displayed, the providers must offer sorting or filtering tools based on objective, pre-disclosed factors such as speed or price. The interfaces may not label routes as the "best price" or "most reliable."
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cryptocurrency White House Signals Finality on CLARITY Act Crypto Regulation
The Senate floor is expected to hold a vote on the CLARITY Act by late May. This follows the expected release of an updated stablecoin yield compromise draft by Senator Thom Tillis this week. The White House crypto adviser, Patrick Witt, stated that negotiations have cleared most remaining obstacles, including the DeFi rules and ethics provisions that had previously been viewed as intractable. The stablecoin yield dispute, which dominated headlines for three months, is largely settled under the Tillis-Alsobrooks framework. The bill cleared the House in July 2025 by a 294 to 134 vote and the Senate Agriculture Committee in January 2026. The Banking Committee must now set a markup date. Following the committee vote, the Banking and Agriculture Committee versions must be reconciled, and the combined Senate text must be reconciled with the House version before a presidential signature. The CLARITY Act becomes law after reconciliation and presidential signature.
Compensation for these providers is limited to a fixed charge to the user, which may be a flat fee or percentage of the transaction. This charge must be agnostic to the product, execution route, execution venue, and counterparty.
Related Brief 4h ago
central banking Kraken cuts out bank intermediaries with first crypto Fed master account
Kraken can now move money faster and more cheaply by cutting out bank intermediaries. The Kansas City Fed granted the crypto exchange's Wyoming banking arm a limited-purpose master account for one year, allowing it to access the wholesale payments system Fedwire. This access lets Kraken move funds directly via the Fed's payment rails and hold limited balances overnight. Unlike most accountholders, Kraken cannot earn interest on reserve balances, access emergency Fed lending, or use the FedNow and ACH payment systems. The account will initially serve wholesale clients.
Providers must prominently disclose all material facts regarding their role, fees, material conflicts of interest, cybersecurity policies, and the parameters used to prepare trading instructions. Any affiliations with trading venues or distributed ledger trading systems must be disclosed, and affiliated venues must be treated on the same terms as unaffiliated ones.
Related Brief 14h ago
venture capital Kraken’s $13.3 Billion Valuation Reveals a 33% Markdown in Exchange Pricing
Kraken is now valued at $13.3 billion, a 33% markdown from the $20 billion valuation the exchange commanded during its November 2024 funding round. This figure was established by Deutsche Börse Group's $200 million investment in Payward Inc., Kraken's parent company. The transaction, which is expected to close in the second quarter of 2026 subject to regulatory approval, gives the Frankfurt-based stock exchange operator a 1.5% fully diluted ownership stake via a secondary market transaction. The investment cements a commercial partnership first announced in December 2025 to build a hybrid market infrastructure for traditional and tokenized assets. Kraken had originally planned a public listing for 2026, but the company has suspended those plans indefinitely, citing unfavorable market conditions.
This relief does not extend to providers that negotiate transaction terms, make investment recommendations, provide advice, arrange financing, or hold user funds or securities, including stablecoins. Providers of custodial wallets with an associated interface are also excluded.
Related Brief 1d ago
financial regulation Blockchain recordkeeping for U.S. securities collateral tests SEC’s tolerance for hybrid finance
A public blockchain could soon play a role in tracking collateral for U.S. securities—without changing who legally holds them. Ondo Finance has asked the SEC not to take enforcement action over a pilot that would record ownership claims to more than 260 U.S. stocks and ETFs on the Ethereum Mainnet, using tokens to represent investor entitlements. The underlying assets would stay in the traditional system, held through the Depository Trust Company (DTC) by broker-dealer Alpaca Securities LLC. What changes is how collateral for Ondo’s offshore investment products is tracked. The tokens, minted by transfer agent Oasis Pro TA and held in BitGo custodial wallets, would mirror security entitlements—claims to assets in custody—not the securities themselves. Alpaca’s off-chain books would remain the official legal record. The blockchain layer would serve as a parallel system, enabling near real-time tracking, automated minting and burning of tokens with investor flows, and better reconciliation. These tokens wouldn’t trade openly. Instead, they’d operate within a controlled environment, with compliance built into the design: transfers screened against watchlists, and the ability to freeze, seize, burn, or reverse transactions. The core regulatory question is whether a broker-dealer can rely on public, permissionless infrastructure to support recordkeeping duties under the Securities Exchange Act and FINRA rules. Ondo argues it doesn’t need to, because the blockchain isn’t the legal record—just a tool. The SEC’s response will determine whether hybrid models that layer blockchain efficiency onto traditional custody can operate within existing law.
The SEC Division of Trading and Markets released this Staff statement as an interim measure. The position will be automatically withdrawn five years after its release date.
Related Brief 1d ago
cryptocurrency XRP Whale Transfer to Coinbase Signals Potential Sell-Off
A major holder of XRP may be preparing to sell $119 million in tokens. The movement of 89,828,700 XRP to a Coinbase-linked address suggests a potential sell-off or position rebalancing. This occurs because assets moved to a centralized exchange are more liquid and readily tradable than those held in personal wallets. The transfer began from wallet address rMWqYat3nJXSLoyqB5tUsfYp6KLgoMHXTN and passed through an intermediate wallet, rwnYLUsoBQX3ECa1A5bSKLdbPoHKLnqf63J, before reaching the final Coinbase-associated address, rRmgo6NW1W7GHjC5qEpcpQnq8NE74ZS1P. The movement of 89,828,700 XRP worth $119 million to Coinbase may signal that a major holder is preparing to sell.
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