The US Securities and Exchange Commission has announced that software enabling users to conduct cryptocurrency transactions via their personal wallets will not require registration as a broker. This clarification is part of the agency's ongoing efforts to provide guidance to the crypto industry in the absence of formal regulations.
To avoid being classified as a broker-dealer, such software must not solicit investors for specific transactions, provide commentary on potential execution routes, or engage in activities like financing, investment advice, or order execution. The SEC has provided a set of guidelines for developers to ensure their software remains outside the regulatory realm. While these statements offer interim guidance, the agency is working on developing more comprehensive rules.
The SEC's evolving stance on cryptocurrency reflects a shift towards more accommodative regulation, with the goal of providing clarity and certainty for the industry.