The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions with individual wallets will not be classified as a broker-dealer, and thus will not require registration and regulation. This stance is in line with the agency's recent position that software developers should be able to create software without triggering such regulations. The SEC has provided guidelines for interface creators to avoid being classified as brokers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, if an interface offers financing, provides investment advice, handles user assets, takes orders, or executes transactions, it will be subject to regulation.
The SEC is working on developing rules for crypto asset securities activities, with wide-ranging proposals expected soon. In the meantime, the agency is providing interim guidance to provide clarity for the industry.