The U.S. Securities and Exchange Commission has issued an interpretation that partly eases the regulatory scope for crypto trading interfaces based on self-custody wallets. It said such services may not need to register as brokers if they meet certain conditions.

Cointelegraph, a blockchain outlet, reported on April 13 that staff at the SEC’s Division of Trading and Markets said in a statement that software interfaces supporting crypto securities trades initiated directly by users on blockchain protocols could be conditionally excluded from broker-dealer registration.

The key is whether there is intermediation and involvement in investment decisions. The SEC explained that even for interfaces using self-custody wallets, it may not immediately apply existing broker rules if they do not connect counterparties or perform functions that influence investment decisions.

It also made clear that such interfaces must not induce or recommend specific crypto securities trades, and must not provide opinions or commentary on the trading routes presented to users. It said they could be excluded from registration obligations only if such conditions are met.

The SEC added that the position is a staff statement rather than a formal rule change, limiting its legal force. Unlike a proposed rule that goes through a public hearing and a commission vote, it largely serves as interpretive guidance on how federal securities laws apply to crypto securities-related activity. The SEC said the document is intended to provide clearer standards for market participants.

Within the commission, calls have also emerged for more fundamental regulatory changes. SEC Commissioner Hester Peirce (헤스터 피어스) said the statement reflects broad interpretations of securities laws that formed while responding to digital assets, and stressed that over the long term a lasting regulatory approach is needed to redefine the broker definition itself.

The interpretation is seen as an extension of the SEC’s ongoing shift in its approach to crypto regulation since President Donald Trump took office. Under the new leadership, a more flexible approach toward the industry is emerging, alongside moves to recalibrate the scope of regulation on a case-by-case basis.

Staffing gaps at regulators are also coming into focus. The SEC currently has 3 serving members out of an authorized 5, and the Commodity Futures Trading Commission is also being run under a single-chair structure. Some in Congress are therefore raising arguments that market structure legislation should include minimum staffing requirements.

In the market, the interpretation is being taken as a signal that provides short-term breathing room for operators offering self-custody wallets and trading interfaces. But because it is not a formal rule, attention is focused on whether separate rulemaking to refine the broker definition and follow-up actions at the commission level will follow.