The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions via individual wallets will not require registration and regulation as a broker. 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. The SEC staff stated that websites or software facilitating securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning 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 interface 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 cryptocurrency regulation, with the leadership embracing the technology and working on new rules.
While these statements do not carry the weight of full-fledged rules, the agency is making progress on interim measures to provide greater certainty.