TLDRSEC staff issued conditional guidance for crypto trading apps on April 13.Platforms must act as neutral tools and avoid executing or advising on trades.The framework requires clear fee structures and conflict disclosures.The staff position will expire in five years unless replaced.The SEC is advancing the proposed Reg Crypto framework under federal review.U.S. Securities and Exchange Commission (SEC) has outlined conditions that allow certain crypto trading apps to operate without broker registration. The agency’s Division of Trading and Markets issued a staff statement on April 13. The guidance defines when platforms may function as neutral tools instead of regulated intermediaries.SEC Defines Limits for Crypto Trading Apps Under Broker RulesThe SEC staff said “Covered User Interface Providers” may avoid broker-dealer registration if they act as neutral interfaces. They must not recommend trades or provide investment advice. They must not promote specific tokens or trading routes. Instead, they must rely on objective criteria such as price or speed when displaying options.The staff also barred providers from executing trades or handling customer assets. They cannot negotiate transactions or structure deals on behalf of users. The statement said such activities would trigger broker status under federal securities law. Therefore, platforms must restrict their role to displaying information and routing user instructions.The guidance requires consistent and transparent fees across assets and execution paths. Providers cannot adjust fees based on selected tokens or venues. If a platform maintains ties to a trading venue, it must disclose that relationship clearly. It must also treat affiliated and non-affiliated venues in a fair manner.The staff imposed strict disclosure standards on covered providers. Platforms must disclose their non-registered status and explain how their systems function. They must outline fee models, conflicts of interest, and cybersecurity controls. They must also describe technical limits and risks tied to the interface.The statement clarified that it reflects staff enforcement views, not binding law. However, it signals how the SEC may approach enforcement during the next five years. The framework will sunset after five years unless the agency replaces it. Until then, firms may rely on this conditional no-action position.SEC Advances Reg Crypto Proposal for Token OfferingsThe SEC is also advancing a broader “Reg Crypto” framework under Chair Paul Atkins. The proposal is currently under review by the Office of Information and Regulatory Affairs. It seeks to update rules governing token fundraising and decentralized finance activities.Under the draft plan, early-stage crypto startups may receive limited exemptions. The framework would allow structured token offerings under the Securities Act of 1933. It would also create a safe harbor pathway for tokens that transition out of securities status. The SEC aims to clarify when digital assets no longer qualify as securities.The proposal also calls for coordination with the Commodity Futures Trading Commission. The SEC plans to align oversight standards across agencies. The agency seeks to streamline compliance for token issuers and trading platforms. Officials have not yet released a final timeline for adoption.Chair Atkins has stated that the agency wants clearer boundaries for digital asset markets. The SEC continues to review public input on the Reg Crypto framework. The proposal remains under federal review as of April 13. Further updates will follow once OIRA completes its assessment.The post SEC Issues Framework for Crypto Trading Apps and Brokers appeared first on Blockonomi.