The US Securities and Exchange Commission (SEC), which abandoned its negative stance towards cryptocurrencies under Donald Trump, stated that cryptocurrency trading services may be exempt from brokerage registration under certain conditions.
The SEC’s Office of Transactions and Markets is exempting some DeFi platforms from the brokerage registration requirement.
According to Chinese cryptocurrency journalist Wu Blockchain, the SEC’s Division of Trade and Markets has released guidance exempting certain DeFi protocols and non-custodial wallets from brokerage registration requirements.
According to the SEC’s new guidance, user interfaces such as websites and mobile applications that support blockchain-based trading do not need to be registered as securities brokers if they meet certain conditions.
These conditions include “no order redirection, no investment advice, no storage of user assets, and only fixed, neutral fee structures.”
The SEC stated that this decision is an interim step to clarify the application of regulations relating to crypto asset securities.
“This statement is part of an effort to provide greater clarity regarding the application of federal securities laws to activities involving crypto asset securities.”
According to the statement, this guide will cover self-custodial wallet interfaces, and the exemption will be valid for the next five years.
According to the new guidelines, a DeFi protocol is exempt if it only provides an interface without processing orders or taking custody of assets. The exemption will be valid for five years.
*This is not investment advice.