Crypto Coalition Pushes SEC for Formal DeFi Rules

30+ crypto firms urge the SEC to turn informal DeFi interface guidance into binding rules, warning future leadership could reverse course.

A coalition of more than 30 crypto firms and advocacy groups is pressing the U.S. Securities and Exchange Commission to act. 

The group wants the agency to convert recent informal staff guidance into binding rules. Their push centers on how the SEC should treat non-custodial user interfaces under broker-dealer law. 

At the heart of it is a concern that informal guidance alone cannot offer lasting protection. The coalition, led by DeFi Education Fund, delivered its message in a formal letter to the SEC.

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SEC Staff Guidance on DeFi interfaces Falls Short, Groups Say

Earlier this month, the SEC’s Division of Trading and Markets issued a staff statement. It suggested that certain non-custodial interfaces, such as DeFi front ends and self-custody wallets, may not require broker-dealer registration. The coalition welcomed that step. 

However, Stand With Crypto and its co-signatories described the statement as an interim measure, not a permanent fix. They noted that staff statements carry no binding legal weight and can be reversed at any time.

The letter warned that a future SEC administration could revisit and expand the definition of “broker.” That expansion could pull software developers and infrastructure providers into the broker-dealer registration regime. 

According to the coalition, that outcome would discourage the development of tools that give investors better access to blockchain markets. SEC Commissioner Hester Peirce echoed that concern in her own remarks, calling the staff statement a helpful but insufficient step.

The coalition drew a clear distinction between non-custodial interfaces and traditional broker-dealers. They argued that these interfaces do not intermediate transactions. Instead, they convert user instructions into commands that blockchains can read. 

Moreover, the user retains full control of their assets throughout. That technical difference, the groups contend, means these tools do not raise the same regulatory concerns as conventional brokers. 

.@StandwithCrypto joined @fund_defi and +30 industry leaders to request that the SEC formalize the principles in its recent Staff Statement—distinguishing non-custodial UIs from broker activities—in notice-and-comment rulemaking, so we have durable regulatory clarity that lasts. pic.twitter.com/bhkq7t5bUQ

— Stand With Crypto🛡️ (@standwithcrypto) April 24, 2026

Notice-and-Comment Rulemaking is the Coalition’s Key Demand

The coalition is specifically calling for notice-and-comment rulemaking. That process would open the SEC’s proposed rules to public feedback before they take effect. 

The groups argue this approach would create durable, technology-neutral standards. It would give developers and businesses a reliable framework to build around, rather than guidance that could shift with each new SEC leadership.

In their letter, the signatories asked the Commission to adopt a principles-based framework. That framework would set clear, objective criteria for what counts as brokerage activity. 

They emphasized that formal rules would also bring clarity to other blockchain infrastructure players. 

Validators, API providers, data networks, oracles, and cloud services are among those they listed as potentially affected by ambiguous broker definitions.

The coalition also pointed to the SEC’s recently formed Crypto Task Force as a positive development. They noted the task force has encouraged technical briefings across the agency and welcomed diverse perspectives from the industry. 

Besides, the groups expressed hope that this openness would translate into formal rulemaking that reflects the technical realities of decentralized systems.

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The broader industry concern, as expressed in the letter, is that regulatory uncertainty creates risk. 

Developers building software tools cannot invest confidently if the legal ground beneath them could shift. The coalition stressed that ad hoc guidance forces builders to operate in a gray zone. 

Formal rulemaking, they argued, would remove that burden and allow the industry to plan long-term.

Eleanor Terrett reported on the coalition’s push, noting that the group warned that without binding rules, future SEC leadership could expand broker definitions to include software developers. That outcome, the coalition warned in their letter, would ultimately harm investors by restricting access to blockchain tools. 

🚨NEW: A coalition of more than two dozen crypto firms and advocacy groups led by @fund_defi is calling on the @SECGov to turn recent guidance on DeFi interfaces into formal rulemaking, warning that informal statements aren’t enough to provide long term certainty.

The push… pic.twitter.com/22tHOcC4d4

— Eleanor Terrett (@EleanorTerrett) April 24, 2026

Commissioner Peirce has previously raised similar concerns about overreach in how the SEC applies broker-dealer rules to neutral software.

The coalition said it looks forward to providing more detailed commentary as the process moves forward. For now, their call is straightforward: build on the staff statement with rules that will last beyond a single administration.