U.S. SEC Clarifies That Crypto Wallet Software Is Not a Broker

Section 15 of the U.S. Securities Exchange Act of 1934 requires brokers that facilitate securities transactions for others to register. But DeFi front ends and self-custody wallets generally only translate user instructions into blockchain commands, leaving it unclear whether they constitute brokerage activity. The U.S. Securities and Exchange Commission’s clarification defines a key boundary affecting software developers’ compliance costs and operational risks.

The SEC’s Division of Trading and Markets said on April 13, 2026, that qualifying interfaces for crypto asset securities may operate without registration. Users must be able to adjust transaction parameters themselves, while operators may not solicit specific transactions, provide advice or control assets. Fees must be a fixed amount or percentage. The position does not cover executing, settling or routing orders on behalf of customers. Unless the SEC takes further action, the statement will be withdrawn on April 13, 2031.