The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency transactions using individual wallets will not require registration and regulation as a brokerage firm. In its latest staff statement on cryptocurrency, the SEC clarified that websites or software facilitating securities transactions through self-hosted wallets will not be classified as broker-dealers, aligning with its recent stance that software developers should not be subject to such regulations.
To avoid regulatory scrutiny, interface creators can take measures such as not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, if an interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC is providing interim guidance while it continues to consider regulatory issues related to cryptocurrency and feedback received.
Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and issuing pro-crypto statements. The agency is working on developing comprehensive rules, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.