According to the US Securities and Exchange Commission, software that enables users to transact crypto securities through their personal wallets will not require registration or regulation as a brokerage firm. This stance is reflected in the agency's most recent staff statement on cryptocurrency, which aims to provide clarity and enable the industry to progress in the absence of formal rules.
The SEC staff statement, released on Monday, indicates that websites or software used for securities transactions via self-hosted wallets will not be classified as broker-dealers, aligning with the agency's position that software developers should be able to create programs without triggering such regulations. To avoid being considered a broker, the creators of these interfaces should ensure they do not solicit investors for specific crypto asset transactions, nor provide commentary on potential execution routes displayed to users. However, if the interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview.
The SEC has provided a checklist for interface creators to follow in order to remain outside the regulatory framework. The agency's staff views are intended as an interim measure while the commission continues to evaluate various regulatory issues related to crypto asset securities activities and feedback received.
Under the current administration, the SEC has shifted its stance, embracing the technology and working towards clearer regulations. The agency is developing rules, with wide-ranging proposals nearing the proposal stage, and is working on interim measures to provide greater certainty for the industry.