The US Securities and Exchange Commission has stated that software enabling user interfaces for crypto securities transactions via individual wallets will not require registration or regulation as a brokerage service. This announcement is part of the agency's ongoing series of staff statements on cryptocurrency, aimed at providing guidance to the industry in the absence of permanent regulations.
The SEC staff emphasized that 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 developers should be able to create software without triggering such regulations. To avoid being considered a broker-dealer, the creators of these interfaces must ensure they do not solicit investors for specific crypto asset securities transactions and refrain from providing 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 purview. The SEC is providing these views as an interim measure while it continues to consider various regulatory issues related to crypto asset securities activities and the feedback it has received.
Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and working towards clearer regulations. The agency is developing comprehensive rules, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.
Meanwhile, the Senate is working on the Clarity Act to cement crypto regulations into law, and the agency is implementing interim measures to provide greater certainty.