The US Securities and Exchange Commission has announced that software enabling users to conduct securities transactions through their personal crypto wallets will not be required to register as a broker. This stance is outlined in the agency's latest staff statement on crypto, which aims to provide guidance to the industry in the absence of permanent regulations. The SEC has specified that websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with its recent position that developers should be able to create software without triggering such regulations.
To avoid being classified as a broker-dealer, the creators of these interfaces must ensure they do not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The agency is providing these views as an interim measure while it continues to consider regulatory issues related to crypto asset securities activities. Under the current administration, the SEC has shifted its stance to be more supportive of crypto regulation, with Chairman Paul Atkins working on proposing comprehensive rules. Meanwhile, the agency is developing interim measures to provide greater certainty, even as the Senate works on the Clarity Act to codify crypto regulations into law.