The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions with individual wallets will not require registration and regulation as a broker. This latest staff statement from the agency, which aims to provide guidance to the crypto industry in the absence of permanent rules, indicates that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers. The SEC has outlined a set of guidelines for creators of these interfaces to avoid being subject to regulations, including not soliciting investors for specific crypto asset securities transactions and not providing commentary on potential execution routes. However, if the interface offers financing, provides investment advice, handles user assets, takes 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 consider regulatory issues related to crypto asset securities activities and reviews feedback. Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and working towards creating a more favorable environment. The agency is currently developing rules to provide greater clarity and certainty, with wide-ranging SEC rules nearing the proposal stage.