The US Securities and Exchange Commission has announced that software enabling users to conduct securities transactions through their personal crypto wallets will not be required to register as a broker. This clarification is part of the agency's ongoing effort to provide guidance to the crypto industry in the absence of formal regulations. The SEC staff stated 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 stance that software developers should be able to create programs without triggering regulatory requirements. To avoid being considered a broker, the interface must not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions.
The agency is working on developing comprehensive rules for crypto asset securities activities, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage. In the interim, the agency is providing guidance through staff statements, which, although not as permanent as formal rules, aim to provide clarity and certainty for the crypto industry.