According to the US Securities and Exchange Commission, software providing user interfaces for cryptocurrency transactions with self-hosted wallets will not require registration or regulation as a broker. This stance is in line with the agency's recent position that software developers should be able to create programs without triggering such regulations.
To avoid being classified as a broker-dealer, the creators of these interfaces must adhere to specific guidelines, including not soliciting investors for specific transactions and refraining from providing commentary on potential execution routes. If an interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC is providing these views as an interim measure while it continues to consider regulatory issues related to cryptocurrency activities and reviews the feedback received. Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and issuing pro-crypto statements.
The agency is working on developing rules to provide greater certainty, with wide-ranging regulations nearing the proposal stage.