The US Securities and Exchange Commission (SEC) has issued a staff statement clarifying how the agency plans to interpret software interfaces facilitating crypto transactions in its broker-dealer regulations.

In a Monday statement, the SEC’s Division of Trading and Markets staff said that under certain circumstances, interfaces that “assist users engaging in user-initiated crypto asset securities transactions on blockchain protocols […] utilizing the user’s self-custodial wallet” may not necessarily be required to register as a broker-dealer with the agency.

The SEC statement specified that self-custodial wallets with such user interfaces may be exempt from registration requirements, provided they do not “solicit investors to…