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 stance is reflected in the agency's latest staff statement on crypto, which aims to provide guidance for the industry in the absence of permanent rules. The SEC has outlined a set of criteria for software developers to avoid being classified as broker-dealers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, if the software 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 comprehensive rules for crypto asset securities activities, with Chairman Paul Atkins indicating that wide-ranging proposals are nearing the proposal stage. In the meantime, the agency is providing interim guidance to provide clarity for the industry.