The US Securities and Exchange Commission (SEC) has stated that software providing user interfaces for cryptocurrency securities transactions using individual wallets will not require registration and regulation as a broker. This latest staff statement from the agency aims to provide guidance to the crypto industry in the absence of permanent rules. The SEC has outlined measures that interface creators can take to avoid being classified as broker-dealers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, if an interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview.
The SEC is working on developing rules for crypto asset securities activities, with Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage. The agency's stance on crypto regulation has shifted under the current administration, with a series of pro-crypto statements emerging in recent times.