DeFi prominent figure urges the SEC to establish formal broker rules

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CryptoNews reports that a major DeFi figure is urging the U.S. Securities and Exchange Commission (SEC) to turn its temporary “non-custodial user interface” safe harbor into a binding broker-dealer rule to protect neutral infrastructure from regulation.
A coalition of DeFi developers and investors is pushing the SEC to clarify its guidance on “non-custodial user interfaces,” arguing that only a clear “broker” definition can prevent neutral infrastructure from being regulated out of existence.
In a letter submitted this week, the coalition expressed support for the SEC’s Division of Trading and Markets statement on April 13, which stated that non-custodial user interfaces that “convert user instructions into blockchain-readable commands” do not require broker registration, as they serve as technical infrastructure rather than trading intermediaries.
The letter warned that without clear, technologically neutral rules, future staff or committees might reinterpret the broker definition, stifling innovation and pushing U.S. core infrastructure overseas.

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