The US Securities and Exchange Commission has stated that software facilitating user interfaces for crypto securities transactions with individual wallets will not require registration and regulation as a broker. This stance is reflected in the agency's latest staff statement on crypto, which aims to provide guidance for the industry in the absence of permanent rules. The SEC staff noted that websites or software used for securities transactions with self-hosted wallets will not be considered part of the broker-dealer category, aligning with the agency's recent position that developers should be able to create software without triggering regulations. To avoid regulatory scrutiny, interface creators can take measures such as not soliciting investors for specific crypto asset securities transactions and not providing commentary on potential execution routes.
However, if an interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall within the agency's regulatory purview. The SEC is providing its views as an interim step 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 on crypto regulation, with the leadership embracing the technology and working on rules to provide clarity for the industry.