DeFi Education Fund, 35 Crypto Leaders Press SEC to Formalize DeFi Broker Guidance

Gate News message, April 25 — The DeFi Education Fund and 35 other crypto industry leaders are urging the Securities and Exchange Commission to formalize its decentralized finance interface guidance into formal rulemaking. In a letter sent this week, the groups pressed the SEC to conduct rulemaking following a statement released on April 13 that clarified certain user interface providers, such as DeFi wallets, do not need to register as broker-dealers.

The crypto groups called for a principles-based framework that provides clear, objective criteria for when activity falls within the definition of "broker." Signatories include Crypto Council for Innovation, the Blockchain Association, Solana Policy Institute, Aave Labs, Andreessen Horowitz, Uniswap Labs, and Mysten Labs. The SEC's April 13 statement outlined scenarios where an interface could be considered a broker-dealer, including if it solicits investors, makes investment recommendations, or influences order routing decisions.

While the groups called the SEC's statement "an important step," they warned that informal guidance may lack staying power. "Reliance on informal guidance has its own risks," they said, emphasizing the importance of preventing overly expansive interpretations of the term "broker" from emerging now or being revived in the future.