According to the US Securities and Exchange Commission, software that facilitates user interface creation for crypto securities transactions via individual wallets will not require registration or regulation as a broker. This stance is outlined in the agency's latest staff statement on cryptocurrency, part of a broader series of views aimed at allowing the crypto industry to progress in the absence of permanent rules. The statement, released on Monday, indicates 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 position that developers should be able to write software without triggering such regulations.
To avoid being considered a broker, the creators of these interfaces can take certain measures, including refraining from soliciting investors for specific crypto asset securities transactions and avoiding commentary on potential execution routes. However, if an interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The staff statement emphasizes that these views are interim and that the commission continues to consider various regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has shifted towards a more crypto-friendly stance, with the leadership reversing previous resistance and embracing the technology.
While these statements provide clarity, they do not carry the same weight as full-fledged rules, which the agency is currently working on. The SEC is also developing wide-ranging rules, with proposal stages nearing completion, and is working on interim measures to provide greater certainty for the agency.