The US Securities and Exchange Commission has announced that software enabling users to engage in securities transactions through their individual wallets will not be required to register as a broker. This latest statement from the agency's staff is part of a series of views on crypto aimed at allowing the industry to move forward in the absence of permanent rules.
The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's recent stance that developers should be able to create software without triggering regulations. To avoid being considered a broker-dealer, the interface must not solicit investors for specific crypto asset securities transactions and must not provide commentary on potential execution routes.
However, if the interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory scope. The staff's views are an interim step while the commission considers various regulatory issues related to crypto asset securities activities.
Under the current administration, the SEC has reversed its previous resistance to crypto and is working on rules to provide greater certainty. The agency is also considering feedback and working on interim measures, with wide-ranging rules close to the proposal stage.