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 broker. This announcement is part of the agency's ongoing series of staff statements on cryptocurrency, aiming to provide clarity and allow the industry to progress in the absence of permanent rules. The SEC staff emphasized that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with their recent stance that developers should be able to create software without triggering such regulations.
To avoid being considered a broker, the creators of these interfaces must ensure they do not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The agency is providing these guidelines as an interim measure while it continues to consider regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has shifted its approach to crypto regulation, embracing the technology and issuing pro-crypto statements that clarify various assets are not considered securities or do not require oversight. Although these statements do not carry the same weight as formal rules, the agency is working on developing such rules, with wide-ranging SEC regulations nearing the proposal stage.