In a recent staff statement, the US Securities and Exchange Commission announced that software providing user interfaces for crypto securities transactions with self-hosted wallets will not need to register and comply with regulations as a broker. This stance aligns with the agency's recent position that software developers should be able to create programs without triggering such regulations.
The SEC has provided guidelines for interface creators to avoid being classified as brokers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, 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 statement is part of the SEC's ongoing effort to clarify its stance on cryptocurrency while it continues to consider various regulatory issues and feedback. Under the current administration, the SEC has shifted its approach to cryptocurrency regulation, with a series of pro-crypto statements and a willingness to create a more favorable environment for the industry.
The agency is currently working on formal rules, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.