The US Securities and Exchange Commission has stated that software enabling users to transact crypto securities through their individual wallets will not require registration and regulation as a broker. This latest stance from the agency is part of a series of staff statements aimed at providing guidance to the crypto industry in the absence of permanent rules. According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering such regulations.
To avoid being classified as a broker-dealer, the creators of these interfaces must ensure they do not solicit investors, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The SEC is working on developing rules to provide greater clarity and certainty for the crypto industry, with wide-ranging rules nearing the proposal stage. In the meantime, the agency is providing interim guidance to facilitate the growth of the crypto sector.