According to the US Securities and Exchange Commission, software that facilitates user interfaces for crypto securities transactions via individual wallets does not require registration and regulation as a broker. This stance is reflected in the agency's latest staff statement on crypto, which aims to provide guidance for the industry in the absence of permanent rules. The SEC staff emphasized 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 developers should be able to create software without triggering 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 purview. The SEC is providing these views as an interim measure while it continues to consider various regulatory issues related to crypto asset securities activities and the feedback received.
Under the current administration, the SEC has shifted its stance on crypto regulation, with the leadership embracing the technology and working towards creating clearer rules. While 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.