The US Securities and Exchange Commission has announced that software enabling users to transact cryptocurrency securities through their personal wallets will not require registration as a broker. This clarification is part of the agency's ongoing effort to provide guidance on cryptocurrency regulation in the absence of permanent rules.
The SEC has outlined specific conditions under which software developers can 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 formal rules for cryptocurrency regulation, 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 for the industry.