The US Securities and Exchange Commission has announced that software enabling users to transact crypto securities through their individual wallets will not require registration and regulation as a broker. This latest statement from the agency's staff on crypto provides guidance for the industry, emphasizing that websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers. To avoid regulation, these interfaces must not solicit investors for specific transactions, provide commentary on execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The SEC is providing these views as an interim measure while it continues to consider regulatory issues related to crypto asset securities activities.
Under the current administration, the SEC has shifted its stance on crypto regulation, with the leadership embracing the technology and working on new rules to provide greater certainty for the industry.