According to the US Securities and Exchange Commission, software that enables user interfaces for crypto securities transactions via individual wallets will not require registration or regulation as a broker. This stance is outlined in the agency's latest staff statement on crypto, which aims to provide clarity for the industry in the absence of permanent rules. The SEC staff stated that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering such regulations.
To avoid being considered a broker, the software must not solicit investors for specific crypto asset securities transactions, nor provide 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 its views as an interim measure while considering various regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has shifted its stance, embracing crypto technology and issuing pro-crypto statements that clarify the regulator's view on various assets and oversight requirements. Although these statements do not carry the weight of full-fledged rules, the agency is working on developing such rules, with wide-ranging SEC rules nearing the proposal stage.