The US Securities and Exchange Commission has stated that software enabling cryptocurrency transactions through individual wallets will not be required to register as a broker. This clarification is part of the agency's ongoing efforts to provide guidance to the crypto industry in the absence of permanent regulations. The SEC has outlined specific measures that software developers can take to avoid being classified as broker-dealers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, if the software offers financing, investment recommendations, or handles user assets, it will be subject to regulatory oversight.
The agency is working on developing comprehensive rules for the crypto industry, with SEC Chairman Paul Atkins indicating that proposals are nearing completion. In the meantime, the SEC is providing interim guidance to provide clarity and certainty for the industry.