According to the US Securities and Exchange Commission, software that enables users to conduct crypto securities transactions through their individual wallets will not require registration and regulation as a broker. This stance is reflected in the agency's latest staff statement on crypto, which aims to provide guidance to the industry in the absence of permanent rules. The SEC has outlined a set of criteria for software developers to follow in order to avoid being classified as broker-dealers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes.
However, if the software offers financing, investment recommendations, or handles user assets, it will fall under the agency's regulatory purview. The SEC is working on developing comprehensive rules for crypto asset securities activities, with Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.
In the meantime, the agency is providing interim guidance to provide clarity and certainty for the industry.