The US Securities and Exchange Commission has stated that software facilitating cryptocurrency transactions through 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 and distribute their products without triggering such regulations.
To avoid being classified as a broker-dealer, the software must not solicit investors, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The SEC has provided guidelines for creators of these interfaces to ensure they remain outside the agency's regulatory scope. The agency is working on more comprehensive rules, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.
In the meantime, the agency is providing interim guidance to offer greater certainty for the crypto industry.