The US Securities and Exchange Commission has announced that software facilitating user interface transactions for crypto securities through individual wallets will not require registration or regulation as a broker. This stance, outlined in the agency's latest staff statement on crypto, underscores the SEC's efforts to provide clarity and flexibility for the crypto industry in the absence of permanent rules. The statement emphasizes that websites or software used for securities transactions with self-hosted wallets will not be considered part of the broker-dealer category, aligning with the agency's recent position that developers should be able to create software without triggering such regulations.
To maintain exempt status, interface creators must adhere to specific guidelines, including not soliciting investors for specific crypto asset securities transactions and refraining from commentary on potential execution routes. The SEC has outlined a checklist of measures to help interface creators avoid regulatory oversight, such as not offering financing, providing investment recommendations, handling user assets, taking orders, or executing transactions. The agency's staff views these guidelines as an interim step while the commission continues to consider various regulatory issues related to crypto asset securities activities and the feedback received.
Under the current administration, the SEC has shifted its stance towards embracing crypto technology, with a series of pro-crypto statements clarifying the regulator's new perspective on various assets and oversight requirements. Although these statements do not carry the weight of full-fledged rules, the agency is working on developing such rules, with wide-ranging SEC rules nearing the proposal stage.