The US Securities and Exchange Commission has announced that software enabling users to execute crypto securities transactions via their individual 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 classified as broker-dealers, aligning with its recent position that developers should be able to create software without triggering such regulations.
To avoid being considered 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 developing comprehensive rules, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage. In the interim, the SEC is providing guidance through staff statements, which, although not carrying the weight of full-fledged rules, offer clarity on the regulator's stance on crypto asset securities activities.