The US Securities and Exchange Commission has announced that software facilitating cryptocurrency transactions through individual wallets will not require registration 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 rules. According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering regulations.
To avoid being classified as a broker-dealer, interface creators must ensure their platforms do not solicit investors, provide commentary on execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The SEC has provided a checklist of measures to help creators comply with these requirements. The agency's staff is providing these views as an interim measure while the commission continues to consider regulatory issues related to crypto asset securities activities and feedback received.
Under the current administration, the SEC has shifted its stance on crypto 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 such rules, with wide-ranging proposals nearing the proposal stage.