A coalition of major DeFi firms is pushing the SEC (US) to convert temporary guidance into binding broker rules. The request matters because current definitions could determine whether core crypto infrastructure remains viable in the United States.
The letter, submitted this week, includes signatories such as DeFi Education Fund, Aave Labs, Uniswap Labs, Paradigm, and Andreessen Horowitz. It responds to an April 13 staff statement outlining when non-custodial interfaces must register as broker-dealers.
Will SEC Rules Protect Non-Custodial DeFi Infrastructure?
The SEC’s Division of Trading and Markets introduced a five-year no-action framework for “Covered User Interface Providers.” It allows certain front ends and self-custodial wallets to operate without broker registration if they meet 12 conditions, including limits on discretion and order handling.
The coalition supports the staff view that non-custodial interfaces simply translate user instructions into blockchain transactions. But it argues that temporary relief expiring in 2031 creates uncertainty for long-term infrastructure investment, especially as firms plan multi-year deployments.
“Absent clear, technology-neutral rules, future staff or Commissions could reinterpret the broker definition,” the group warned in its letter.
It called for formal rulemaking that explicitly excludes neutral software providers, validators, and infrastructure operators from broker classification.
The push comes as legislative progress stalls in Washington. The CLARITY Act remains delayed in the Senate Banking Committee, leaving regulatory agencies as the primary source of near-term guidance for DeFi participants.
Legal analyses from firms including Sidley and Deloitte have described the SEC’s guidance as a partial pathway, but noted it does not address exchange registration, anti-money laundering obligations, or broader compliance exposure. This fragmented approach leaves key operational risks unresolved.
Can interim guidance sustain U.S.-based DeFi innovation without formal legal backing? The next catalyst will be whether the SEC initiates a notice-and-comment rulemaking process or maintains reliance on time-limited staff positions.
