The US Securities and Exchange Commission has announced that software enabling users to conduct securities transactions through their individual wallets will not be required to register as a broker. This statement, the latest in a series of crypto-related views from the agency, aims to provide clarity for the crypto industry in the absence of permanent regulations.
The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's recent stance that developers should be able to create software without triggering regulations. To avoid being classified as a broker-dealer, the interface must not solicit investors, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The agency is working on interim measures to provide regulatory clarity, with wide-ranging rules nearing the proposal stage.
This development reflects the SEC's shifting approach to crypto regulation under the current administration, which has emphasized the need for a more favorable regulatory environment.