According to the US Securities and Exchange Commission, software that facilitates user interfaces for transacting crypto securities through personal wallets does not require registration or regulation as a broker. This stance is outlined in the agency's latest staff statement on cryptocurrency, part of a series of views aimed at enabling the crypto industry to progress in the absence of permanent rules.
The SEC staff has indicated 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 position that software developers should be able to write code without triggering such regulations. To avoid being considered a broker, the creators of these interfaces can follow certain guidelines, including not soliciting investors for specific crypto asset securities transactions and not providing commentary on potential execution routes displayed to users.
However, if an interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC has stated that these views are being provided as an interim measure while the commission continues to consider various regulatory issues related to crypto asset securities activities and the feedback it has received.
Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, embracing the technology and clarifying its views on assets that would not be considered securities or trigger oversight requirements. Although these statements do not carry the weight of full-fledged rules, the agency is working on developing such rules, with wide-ranging SEC rules nearing the proposal stage.