The US Securities and Exchange Commission has announced that software enabling user interfaces for cryptocurrency securities transactions via individual wallets will not require registration or regulation as a broker. In its latest staff statement on cryptocurrency, the SEC indicated that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with its recent stance that developers should be able to create software without triggering such regulations. To avoid regulation, 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 SEC is providing its views as an interim measure while it continues to consider regulatory issues related to cryptocurrency and the feedback it has received. Under the current administration, the SEC has shifted its approach to cryptocurrency regulation, embracing the technology and working towards clearer rules. While these statements do not carry the weight of permanent rules, the agency is working on developing such rules, with wide-ranging proposals nearing completion.