SEC Allows User Interfaces to Facilitate Crypto Transactions

The SEC's Division of Trading & Markets has provided guidance on the regulation of user interfaces designed to facilitate cryptocurrency transactions.

In a statement, the division defined 'user interface' as an online tool or application that assists users in initiating transactions on blockchain protocols using their self-custodial wallets.

The staff's position applies to interfaces operating in a neutral fashion by providing mechanics to facilitate transactions on one or more trading platforms. The conditions for compliance include mechanisms to evaluate and audit trading venues, and disclosures related to potential conflicts of interest.