The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions with self-hosted wallets will not require registration and regulation as a brokerage firm. This is in line with the agency's recent stance that software developers should be able to create programs without triggering such regulations.
The SEC has provided guidelines for interface creators to avoid being classified as broker-dealers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, if an interface offers financing, provides investment advice, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC is working on developing rules for cryptocurrency activities, with wide-ranging proposals nearing the proposal stage. In the meantime, the agency is issuing interim guidance to provide clarity for the industry.