The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions via individual wallets will not require registration and regulation as a broker. In its latest statement on crypto, the SEC staff indicated that websites or software facilitating securities transactions with self-hosted wallets will not be categorized as broker-dealers, aligning with the agency's stance that developers should be able to create software without triggering such regulations. To avoid regulatory oversight, interface creators can take measures such as not soliciting investors for specific crypto asset securities transactions and not providing 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 within the agency's regulatory scope.
The SEC is providing its views as an interim step while considering various regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has reversed its previous resistance to crypto regulation, with the leadership embracing the technology and working on developing rules to provide greater certainty for the industry.