In its latest statement on cryptocurrency, the US Securities and Exchange Commission has announced that software facilitating transactions of crypto securities through personal wallets will not require registration as a broker. This stance, part of a broader series of staff statements aiming to guide the crypto industry in the absence of formal rules, aligns with the agency's recent position that software developers should be able to create such interfaces without triggering regulatory requirements.
To avoid being classified as a broker-dealer, the software must not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The SEC is providing these interim guidelines while it continues to consider regulatory issues related to crypto asset securities. Under the current administration, the SEC has shifted towards a more crypto-friendly stance, with leadership working on formal rules and the Senate considering legislation to solidify crypto regulations.