The US Securities and Exchange Commission has announced that software enabling users to engage in crypto securities transactions via their personal wallets will not be required to register as a broker. This stance is reflected in the agency's latest staff statement on crypto, which aims to provide guidance to the industry in the absence of permanent regulations. To avoid being classified as a broker-dealer, such software must not solicit investors, provide commentary on potential execution routes, offer financing, or handle user assets.
The SEC has outlined a set of criteria for developers to ensure their interfaces remain outside the regulatory scope. The agency is working on developing comprehensive rules for crypto asset securities activities, with SEC Chairman Paul Atkins indicating that wide-ranging proposals are nearing the proposal stage. In the interim, the SEC is providing guidance through staff statements, which, although not carrying the weight of full-fledged rules, offer clarity on the agency's position.