The US Securities and Exchange Commission has stated that software facilitating crypto securities transactions through individual wallets will not require registration or regulation as a broker. This clarification is part of the agency's ongoing efforts to provide guidance to the crypto industry in the absence of permanent rules. The SEC has outlined specific conditions that must be met for software to avoid being classified as a broker-dealer, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. If the software offers financing, investment recommendations, or handles user assets, it will be subject to regulatory oversight.
The agency is working on developing comprehensive rules for crypto asset securities activities, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage. In the interim, the SEC is providing guidance through staff statements, which, although not carrying the weight of full-fledged rules, aim to provide clarity and certainty for the crypto industry.