The US Securities and Exchange Commission has announced that software enabling users to transact crypto securities through their individual wallets will not require registration or regulation as a brokerage firm. This stance, outlined in the agency's latest staff statement on cryptocurrency, indicates that websites or software used for such transactions will not be classified as broker-dealers, aligning with the SEC's recent position that developers should be able to create software without triggering regulatory requirements. To avoid being considered a broker-dealer, the creators of these interfaces must ensure they do not solicit investors, provide commentary on potential execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions.
The SEC is providing these guidelines as an interim measure while it continues to explore regulatory issues related to crypto asset securities activities. Under the current administration, the SEC has shifted its stance on crypto regulation, embracing the technology and working towards creating clearer rules.
While these statements do not carry the same weight as formal rules, the agency is developing more comprehensive regulations, with wide-ranging rules nearing the proposal stage.