The US Securities and Exchange Commission has announced that software facilitating cryptocurrency transactions through personal wallets will not require registration as a broker. In its latest statement on cryptocurrency, the SEC indicates that websites or software utilized for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's recent position that software developers should be able to create programs without triggering regulatory requirements. To avoid being considered a broker, the creators of these interfaces must adhere to specific guidelines, including not soliciting investors for specific transactions and refraining from providing commentary on potential execution routes.
If an interface offers financing, provides investment advice, handles user assets, accepts orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC is providing these views as an interim measure while it continues to examine regulatory issues related to cryptocurrency activities and reviews feedback received.
Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and issuing statements that clarify its views on various assets and oversight requirements. Although these statements do not carry the weight of permanent rules, the agency is working on developing comprehensive regulations, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.