The US Securities and Exchange Commission (SEC) has announced that software facilitating cryptocurrency transactions through individual wallets will not be required to register as a broker. This clarification marks the latest development in the agency's ongoing efforts to provide guidance on cryptocurrency regulations. 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 software developers should not be subject to such regulations.
To avoid being considered a broker-dealer, the creators of these interfaces must ensure they do not solicit investors, provide commentary on potential execution routes, offer financing, handle user assets, take orders, or execute transactions. The SEC has provided a checklist of measures to help developers avoid triggering regulatory requirements.
The agency's staff views are intended as an interim step while the commission continues to consider regulatory issues related to cryptocurrency activities and feedback received. Under the current administration, the SEC has shifted its approach to cryptocurrency regulation, embracing the technology and working towards clearer guidelines.
While these statements do not carry the weight of full-fledged rules, the agency is working on developing comprehensive regulations, with wide-ranging rules nearing the proposal stage.