The SEC Division of Trading and Markets published a staff statement, telling certain wallet-linked crypto trading apps they can operate without a broker-dealer license – for now – as long as they function as neutral software and stay out of the business of actually moving your money.The detail most…
➤ The SEC has granted certain self-custody crypto apps a five-year grace period to obtain broker-dealer licenses, provided they act as neutral software and do not handle user funds.
➤ This exemption is a staff statement, not a formal rule, and carries significant uncertainty regarding its long-term enforceability and potential reversal by future administrations.
➤ The guidance aims to formalize lines around digital asset securities trading, emphasizing user control, transparency, and objective routing, while acknowledging the growing market for tokenized RWAs, including Treasuries and equities.