The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions via individual wallets will not require registration or regulation as a brokerage firm. This clarification is part of the agency's ongoing efforts to provide guidance to the cryptocurrency industry in the absence of formal regulations.
The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's recent stance that software developers should be able to create software without triggering such regulations. To avoid being considered a broker-dealer, the creators of these interfaces must ensure they do not solicit investors, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The agency is working on developing formal rules, with SEC Chairman Paul Atkins indicating that comprehensive rules are nearing the proposal stage.
In the meantime, the agency is providing interim guidance to provide clarity and certainty for the cryptocurrency industry.