The US Securities and Exchange Commission has announced that software enabling cryptocurrency transactions through personal wallets will not require registration as a broker. This stance is outlined in the agency's latest staff statement on cryptocurrency, which aims to provide guidance for the industry in the absence of permanent regulations. The SEC has specified that websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering such regulations.
To avoid being classified as a broker-dealer, the interface must not solicit investors, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The SEC is working on developing comprehensive rules for cryptocurrency regulations, with the agency's chairman indicating that wide-ranging rules are nearing the proposal stage.
Meanwhile, the Senate is also working on the Clarity Act to establish crypto regulations into law.