The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency transactions with self-hosted wallets will not require registration and regulation as a broker. This stance is in line 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 broker-dealers, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. However, if an interface offers financing, provides investment advice, 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 measure while considering various regulatory issues related to cryptocurrency activities. Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and working on creating clearer rules.
While these statements do not carry the weight of permanent rules, the agency is working on developing more comprehensive regulations, with wide-ranging rules nearing the proposal stage.