The US Securities and Exchange Commission has announced that software enabling user interfaces for crypto securities transactions through individual wallets will not be required to register and comply with broker regulations. This latest statement from the agency's staff on cryptocurrency is part of a series of views aimed at allowing the crypto industry to progress in the absence of permanent rules.
According to the SEC, 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 such regulations. To avoid being considered a broker, the creators of these interfaces must adhere to certain guidelines, including not soliciting investors for specific crypto asset securities transactions and refraining from providing 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 within the agency's regulatory scope.
The SEC staff has provided these views 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, embracing the technology and issuing pro-crypto statements that clarify the regulator's new view on various assets and 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.