On April 13, 2026, the Staff of the Division of Trading and Markets (Staff) of the U.S. Securities and Exchange Commission (SEC) issued a statement detailing their views on the broker-dealer registration requirements under Section 15(a) of the Securities Exchange Act of 1934 (Exchange Act) with respect to non-custodial wallet providers that perform certain activities related to crypto asset securities.
According to the statement, a non-custodial wallet provider may provide investor education; allow investors to set trade parameters; connect investors to trading venues or liquidity providers for execution; and display market data without registration as a broker-dealer under Section 15(a) of the Exchange Act. Non-custodial wallet providers are permitted to receive fees — including transaction-based fees — for this activity. Non-custodial wallet providers are required to implement compliance procedures and provide disclosure to users. The Staff has signaled that an exemption from registration for exchanges where secondary trading occurs may come next.
The Securities Industry and Financial Markets Association (SIFMA) opposed the Staff’s positions in January and February letters to the SEC. State securities laws, sometimes called Blue Sky laws, may still require non-custodial wallet providers to register as broker-dealers to perform these activities.
Absent intervening action by the SEC, the Staff’s statement will be considered withdrawn effective five years from April 13.
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