SEC Lets Self‑Hosted Crypto Wallets Stay Outside Broker Regime, for Now
The U.S. Securities and Exchange Commission (SEC) has said
that software allowing users to trade crypto securities through their own
wallets will not be regulated as a broker.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)The staff view, published on Monday, clarified that websites
or software providing access to self-hosted wallets do not need to register as
broker-dealers if they act only as interfaces for transactions.NEW 🚨: As part of Project Crypto, the Division of Trading and Markets issued a staff statement providing its views on broker-dealer registration requirements in connection with certain interfaces used to prepare transactions in crypto asset securities.https://t.co/8jCwFOJZcw pic.twitter.com/gmp7jbBhgV— U.S. Securities and Exchange Commission (@SECGov) April 13, 2026According to the SEC, the guidance aims to help developers
operate without breaching securities laws while the agency continues to define
permanent rules for the crypto industry. Developers must, however, ensure their
tools stay neutral and avoid direct involvement in trading or asset handling.The staff outlined boundaries to remain outside regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Read this Term,
stating that the software must not solicit investors, provide investment
recommendations, handle assets, take orders, or execute trades. If these
functions are included, the interface may fall under existing broker
regulations.Keep reading: SEC and CFTC Finally Align on Crypto: “Most Assets Aren’t Securities”“The staff is providing its views as an interim step while
the commission continues to consider various regulatory issues relating to
crypto asset securities activities and the feedback it has received,” the
statement said.Temporary Guidance Amid Ongoing Policy WorkUnder President Donald Trump’s administration, the SEC has
been moving toward a more permissive stance on crypto activities. Chairman Paul
Atkins has previously said the agency is working on a broader rule proposal to
define how securities laws apply to digital assets.The latest statement adds to a series of nonbinding staff
interpretations meant to guide the industry until formal rules are introduced
or until Congress passes legislation such as the proposed “Clarity Act.”Recently, the SEC and CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term issued a joint interpretation confirming that most crypto assets are not securities, aligning their approaches by defining when tokens are treated as securities versus commodities. This created a clearer taxonomy for assets like commodities, collectibles, utility tokens, stablecoins, and securities. It also reduced regulation-by-enforcement by giving firms a more predictable rulebook on when and how federal securities and commodities laws apply.For brokers, that clarity shifted the hard work in-house: firms now have to classify tokens up front, monitor how they’re marketed and used over time, and be ready to defend those judgments if the SEC later questions why an asset wasn’t treated as a security.The U.S. Securities and Exchange Commission (SEC) has said
that software allowing users to trade crypto securities through their own
wallets will not be regulated as a broker.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)The staff view, published on Monday, clarified that websites
or software providing access to self-hosted wallets do not need to register as
broker-dealers if they act only as interfaces for transactions.NEW 🚨: As part of Project Crypto, the Division of Trading and Markets issued a staff statement providing its views on broker-dealer registration requirements in connection with certain interfaces used to prepare transactions in crypto asset securities.https://t.co/8jCwFOJZcw pic.twitter.com/gmp7jbBhgV— U.S. Securities and Exchange Commission (@SECGov) April 13, 2026According to the SEC, the guidance aims to help developers
operate without breaching securities laws while the agency continues to define
permanent rules for the crypto industry. Developers must, however, ensure their
tools stay neutral and avoid direct involvement in trading or asset handling.The staff outlined boundaries to remain outside regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Read this Term,
stating that the software must not solicit investors, provide investment
recommendations, handle assets, take orders, or execute trades. If these
functions are included, the interface may fall under existing broker
regulations.Keep reading: SEC and CFTC Finally Align on Crypto: “Most Assets Aren’t Securities”“The staff is providing its views as an interim step while
the commission continues to consider various regulatory issues relating to
crypto asset securities activities and the feedback it has received,” the
statement said.Temporary Guidance Amid Ongoing Policy WorkUnder President Donald Trump’s administration, the SEC has
been moving toward a more permissive stance on crypto activities. Chairman Paul
Atkins has previously said the agency is working on a broader rule proposal to
define how securities laws apply to digital assets.The latest statement adds to a series of nonbinding staff
interpretations meant to guide the industry until formal rules are introduced
or until Congress passes legislation such as the proposed “Clarity Act.”Recently, the SEC and CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss
Read this Term issued a joint interpretation confirming that most crypto assets are not securities, aligning their approaches by defining when tokens are treated as securities versus commodities. This created a clearer taxonomy for assets like commodities, collectibles, utility tokens, stablecoins, and securities. It also reduced regulation-by-enforcement by giving firms a more predictable rulebook on when and how federal securities and commodities laws apply.For brokers, that clarity shifted the hard work in-house: firms now have to classify tokens up front, monitor how they’re marketed and used over time, and be ready to defend those judgments if the SEC later questions why an asset wasn’t treated as a security.
