The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency securities transactions with self-hosted wallets will not require registration or regulation as a brokerage firm. This clarification is part of the agency's ongoing effort to provide guidance to the cryptocurrency industry in the absence of formal regulations. The SEC staff statement emphasizes that websites or software used for securities transactions with individual 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-dealer, 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 SEC is working on developing formal rules for cryptocurrency regulations, with wide-ranging proposals nearing the final stages.
In the interim, the agency is providing guidance to offer clarity and certainty to the industry.