The US Securities and Exchange Commission has announced that software enabling crypto securities transactions through individual wallets will not require registration and regulation as a broker. This statement, the latest in a series of crypto-related views from the agency, aims to provide guidance to the crypto industry 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 part of the broker-dealer category, aligning with the agency's recent stance that developers should be able to create software without triggering regulations. To avoid regulation, interface creators must ensure their platforms 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 rules to provide greater certainty, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage. These developments reflect a shift in the agency's approach to crypto regulation, embracing the technology and providing a more favorable environment for the industry to grow.