U.S. SEC sets DeFi wallet criteria: self-custody and no solicitation exempt from registration [Crypto Briefing]

[Financial News] The United States Securities and Exchange Commission (SEC) has issued guidance exempting companies that provide Decentralized Finance (DeFi) service interfaces from the obligation to obtain a securities broker license. The key point is that if they only offer a trading interface based on self-custodial wallets, where users control their own assets, the SEC will not treat this as broker activity. Observers say this move will lower barriers to entry for general FinTech platforms into the tokenized securities market.
According to the investment banking industry on the 17th, the SEC released a statement titled "Statement Regarding Broker-Dealer Registration for Providers of Certain User Interfaces Used to Prepare for Transactions in Crypto Asset Securities."
In the statement, the SEC clarified that providers of blockchain wallets or Decentralized Finance (DeFi) service user interfaces are not required to register as broker-dealers under U.S. securities laws, provided they meet certain conditions.
First, the structure must be based on self-custody, meaning users manage their own private keys and retain full control over their assets. In addition, the platform must not effectively act as an intermediary by soliciting trades in specific securities or providing investment advice.
The guidance is seen as offering clear rules for mainstream app and platform operators that had hesitated to introduce digital asset services due to regulatory uncertainty. In theory, existing shopping, social media, and FinTech apps could embed self-custodial wallet functions and allow users to trade tokenized stocks or government bonds within the app, without obtaining a separate securities brokerage license.
Sungwook Hong, an analyst at NH Investment & Securities, said, "With this guidance, general platforms can now embed wallets and enable users to trade tokenized stocks and similar assets," adding, "This is expected to spur broader adoption of wallet and DeFi services."
Kim Ji-won, an analyst at KB Securities, also noted, "The SEC has stated that software supporting digital asset trading through personal wallets does not need to be registered and regulated as a broker," and added, "This aligns with the SEC's recent stance that developers should be able to build such software without being constrained by those regulations." However, Kim cautioned, "While a simple interface is not subject to regulation, there remains the possibility of regulatory oversight if it includes functions such as investment solicitation, asset management, or trade execution."

elikim@fnnews.com Kim Mi-hee Reporter