The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions using individual wallets will not require registration or regulation as a brokerage firm. This stance is in line with the agency's recent position that software developers should be able to create programs without triggering such regulations.
The SEC has provided a set of guidelines for interface creators to avoid being classified as brokers, 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 be subject to regulation. The agency is providing these guidelines 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 cryptocurrency regulation, with the leadership embracing the technology and working on creating clearer rules. The agency is currently developing comprehensive rules, which are nearing the proposal stage, to provide greater certainty for the industry.