The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions using individual wallets will not require registration and regulation as a brokerage firm. This statement is part of the agency's ongoing series of staff views on cryptocurrency, intended to provide guidance to the industry in the absence of permanent regulations. According to the SEC, 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 software developers should be able to create programs without triggering such regulations. To avoid being considered a broker-dealer, interface creators can take certain measures, including not soliciting investors for specific transactions and not providing commentary on potential execution routes.
However, if an interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC is providing these views as an interim step while it continues to consider regulatory issues related to cryptocurrency and feedback from the industry. Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and working towards clearer regulations. The agency is developing rules to provide greater certainty, with wide-ranging proposals nearing the proposal stage.