The US Securities and Exchange Commission has announced that software enabling individuals to conduct securities transactions using their personal crypto wallets will not be required to register as a broker. This latest statement from the agency's staff provides guidance on the regulatory treatment of such software, emphasizing that it will not be considered a broker-dealer as long as it does not engage in certain activities, such as soliciting investors or providing investment advice.
To avoid being classified as a broker, the software must not offer financing, handle user assets, or execute transactions. The SEC has provided a checklist for developers to ensure their software complies with these requirements. The agency's stance is part of its ongoing efforts to provide clarity on crypto regulations, with SEC Chairman Paul Atkins working on developing comprehensive rules for the industry. The SEC's guidance is seen as a positive step for the crypto industry, which has been seeking clearer regulations to operate within.