The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions using individual wallets will not require registration or regulation as a brokerage firm. This is according to the agency's latest staff statement on cryptocurrency, which aims to provide guidance to the crypto industry in the absence of permanent regulations. The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be considered brokerage services, aligning with the agency's recent stance that software developers should not be subject to such regulations.
To avoid being classified as a brokerage service, interface creators can take certain 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 advice, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory scope. The SEC is providing these views as an interim step while it continues to consider various regulatory issues related to cryptocurrency and the feedback it has received.
Under the current administration, the SEC has reversed its previous resistance to cryptocurrency and is now working on creating rules to provide greater clarity and certainty for the industry.