The US Securities and Exchange Commission has announced that software enabling users to conduct crypto securities transactions through their individual wallets will not be required to register as a broker. This clarification is part of the agency's ongoing effort to provide guidance on crypto regulations in the absence of permanent rules. According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's recent stance that developers should be able to create software without triggering such regulations. To avoid regulatory oversight, interface creators can take measures such as not soliciting investors for specific transactions and not providing commentary on potential execution routes.
However, if the 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 step while considering various regulatory issues related to crypto asset securities activities.
Under the current administration, the SEC has shifted its stance on crypto regulation, with the leadership embracing the technology and working on new rules. While these statements do not carry the weight of full-fledged rules, the agency is making progress on interim measures to provide greater certainty.