What It Means for Self-Custody and Crypto Platforms

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The SEC’s guidance emphasizes that interfaces connected to self-custodial wallets can avoid broker-dealer registration if they remain neutral. That means they cannot promote specific transactions, guide users toward particular execution paths, or provide investment-like recommendations.

For developers and crypto platforms, this creates a clearer boundary: build tools, not advisors. It reinforces the idea that user-controlled ecosystems—where individuals manage their own funds—can operate with fewer regulatory burdens, as long as they don’t cross into active financial intermediation.

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sec slowly figuring out how crypto works