The US Securities and Exchange Commission has announced that software enabling user interfaces for crypto securities transactions via individual 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 not be subject to 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, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview.
The SEC is working on developing rules for crypto asset securities activities, with wider-ranging rules nearing the proposal stage. In the interim, the agency is providing guidance to give the industry greater certainty, while the Senate works on the Clarity Act to cement crypto regulations into law.