The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions through individual wallets will not require registration and regulation as a broker. This latest statement from the agency's staff on crypto is part of a series of views aimed at allowing the crypto industry to move forward in the absence of permanent rules. The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be considered as belonging to the broker-dealer category, aligning with the agency's recent stance that developers should be able to write software without triggering such regulations. To avoid regulation, interface creators can take 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 recommendations, 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 considering various regulatory issues related to crypto asset securities activities and feedback received.
Under the current administration, the SEC has reversed its previous resistance to crypto regulation and is working on proposing rules to provide greater certainty to the industry.