According to the US Securities and Exchange Commission, software that enables user interfaces for transacting crypto securities through personal wallets will not require registration or regulation as a brokerage firm. This stance is reflected in the agency's recent staff statements on cryptocurrency, which aim to provide clarity and allow the industry to move forward in the absence of permanent regulations. The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's position that developers should be able to create software without triggering such regulations. To avoid being considered a brokerage, the creators of these interfaces can take certain measures, including not soliciting investors for specific transactions and not providing commentary on potential execution routes.
However, if the interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall within the agency's regulatory scope. The SEC is providing its views as an interim step while considering various regulatory issues related to cryptocurrency and the feedback it has received.
Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and working towards clearer regulations. While these statements do not carry the weight of full-fledged rules, the agency is working on developing such rules, with wide-ranging proposals nearing the proposal stage. Meanwhile, the Senate is working on the Clarity Act to cement cryptocurrency regulations into law, and the agency is developing interim measures to provide greater certainty.