CTF Written Submission

Re: Non‑Custodial Wallet Software and Neutral User Interfaces

Feb. 10, 2026
  • Determining whether non-custodial wallet providers qualify as brokers under the Exchange Act requires a functional, facts-and-circumstances assessment—not reliance on labels or interface appearance.
  • The court held that non-custodial wallets with embedded interfaces do not constitute brokers absent meaningful participation in effecting transactions, reinforcing that commission-based payment alone is not dispositive.
  • SEC and judicial precedents confirm that transaction-based compensation and routing services, standing alone, are insufficient to trigger broker status without discretionary control or core trading functions.
     

Last Reviewed or Updated: Feb. 10, 2026