DeFi Education Fund and 35 Industry Leaders Urge SEC to Clarify DeFi Interface Rules

The group is calling on the SEC (U.S. securities regulator) to formally distinguish DeFi (blockchain-based financial services) user interfaces from broker-dealers under securities rules.

Summary

The DeFi Education Fund and 35 industry leaders are urging the SEC (U.S. securities regulator) to formally define the difference between DeFi (blockchain-based financial services) user interfaces and broker-dealers. The request centers on whether front-end tools that help users access decentralized protocols should be treated the same as regulated intermediaries that execute securities transactions for clients. The push reflects a broader policy debate over how securities law applies to decentralized software, especially where interfaces provide access but may not take custody of assets or directly handle trades.

Terms & Concepts
  • DeFi: Short for decentralized finance, a blockchain-based ecosystem of financial services that operates through smart contracts (self-executing blockchain code) instead of traditional intermediaries.
  • User interface: The front-end application or website that lets users interact with a blockchain protocol without directly using raw code or command-line tools.
  • Broker-dealer: A regulated financial firm or person that buys and sells securities for clients or for its own account, typically subject to registration and compliance rules.