SEC Exempts Non-Custodial Crypto Apps from Broker-Dealer Registration

The US Securities and Exchange Commission (SEC) has announced a significant development in its regulation of the cryptocurrency industry. A new rule exempts non-custodial crypto applications from broker-dealer registration, allowing developers to create user-friendly interfaces for decentralized finance (DeFi) products without interference from regulatory bodies.

According to the SEC's 'Project Crypto' initiative, this exemption applies to web applications, wallets, and browser extensions that do not provide investment advice or control user funds. The regulation also specifies requirements for routing trades between users and crypto exchanges, ensuring a neutral approach.