The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions via individual wallets will not be required to register and comply with broker regulations. This stance is reflected in the agency's latest staff statement on cryptocurrency, which aims to provide guidance to the crypto industry in the absence of permanent rules. According to the SEC, websites or software facilitating securities transactions through self-hosted wallets will not be classified as broker-dealers, consistent with the agency's recent position that developers should be able to create software without triggering such regulations.
To avoid being considered a broker, the creators of these interfaces must ensure they do not solicit investors for specific crypto asset securities transactions and refrain from providing commentary on potential execution routes. However, if an interface offers financing, provides investment advice, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview.
The SEC has emphasized that these views are interim measures while the commission continues to consider various regulatory issues related to crypto asset securities activities and the feedback it has received. Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and working towards clearer guidelines.
While these statements do not carry the same weight as formal rules, the agency is actively working on developing such rules, with wide-ranging SEC rules nearing the proposal stage. Meanwhile, the Senate is working on the Clarity Act, which aims to cement crypto regulations into law, and the agency is developing interim measures to provide greater certainty.