The US Securities and Exchange Commission has stated that software enabling user interfaces for crypto securities transactions through individual wallets will not require registration or regulation as a broker. This latest statement from the agency's staff provides clarity on the regulatory treatment of such software, aligning with the SEC's position that developers should be able to create software without triggering brokerage regulations.
To avoid being classified as a broker-dealer, the software must not solicit investors, provide commentary on execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The SEC has provided guidelines for creators of these interfaces to ensure they remain outside the agency's regulatory scope. The agency is working on developing rules to provide greater certainty for the crypto industry, with SEC Chairman Paul Atkins indicating that comprehensive rules are nearing the proposal stage.