SEC and CFTC Issue New Guidelines for Crypto Interfaces

New regulatory guidelines allow crypto software developers to operate without broker-dealer registration by maintaining operational neutrality.

The document enables software developers and interface providers to operate without registering as brokers, provided they remain “operationally neutral.”

These guidelines arrive amid broader efforts in 2026 to harmonize regulations between the SEC and CFTC, aiming to provide greater clarity for market participants.

Who Is Covered Under the New Framework

The new statement focuses on so-called “covered user interfaces”—software solutions such as websites, mobile applications, and browser extensions that allow users to interact with blockchains.

This includes crypto wallet interfaces and tools that assist in creating and sending transactions, provided the user retains control over their private keys. In this way, the regulator clearly distinguishes self-custody from services that take control of assets.

“Neutrality” as a Key Requirement

The core principle of the new framework is “operational neutrality.” To avoid being classified as a broker-dealer, interface providers must act as technological intermediaries without influencing user decisions.

This means platforms cannot recommend “best” trades or direct users toward specific execution routes. Instead, they must use objective criteria—such as price or speed—that are clearly disclosed and subject to user customization.

Full transparency regarding fees is also required; fees must be fixed and independent of the transaction outcome. Any conflicts of interest or affiliations with trading platforms must be clearly disclosed.

Limited Scope and Temporary Nature

Regulators emphasize that the guidelines represent a limited “safe harbor” and do not fully exempt participants from regulatory oversight. If a provider begins offering investment advice, negotiating deals, or holding client funds, they will fall under the scope of registration requirements.

Furthermore, the document is interpretive rather than a formal rule and will remain in effect for a period of up to five years or until final regulation is adopted.

Part of a Broader Regulatory Shift

The move follows an earlier joint statement between the SEC and CFTC from March 2026, which suggested that a crypto asset itself is not viewed as a security; rather, the assessment is made at the level of specific transactions.

This shift signals a more flexible approach to industry regulation and could open the door for wider participation from technology companies that previously avoided the sector due to legal uncertainty.

What This Means for the Market

For developers and crypto companies, the new guidelines provide greater clarity on how to structure products without falling under the heavy broker-dealer regime. At the same time, investors can expect greater transparency and standardization when using such interfaces.

Broadly speaking, the initiative shows that regulators are striving to find a balance between innovation and investor protection—a key factor for the next phase of the crypto market’s development.