The US Securities and Exchange Commission has announced that software facilitating crypto securities transactions through individual wallets will not require registration and regulation as a broker. This latest statement from the agency's staff provides guidance on crypto regulations, aiming to allow the industry to progress in the absence of permanent rules.
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 stance that developers should be able to create software without triggering such regulations. To avoid being considered a broker-dealer, the software must not solicit investors for specific crypto asset securities transactions and must not provide commentary on potential execution routes.
However, if the interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory scope. The SEC is providing these views as an interim measure while considering various regulatory issues related to crypto asset securities activities.
Under the current administration, the SEC has shifted its stance on crypto regulation, with the leadership embracing the technology and working on rules to provide greater certainty. The agency is developing wide-ranging rules, which are nearing the proposal stage, while the Senate works on the Clarity Act to cement crypto regulations into law.