The US Securities and Exchange Commission has stated that software facilitating crypto securities transactions through individual wallets will not require registration and regulation as a broker. In its latest staff statement on crypto, the SEC clarified that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with its recent stance that developers should be able to create software without triggering regulations.
To avoid regulatory oversight, 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 scope. The SEC is providing its views as an interim step while considering various regulatory issues related to crypto asset securities activities.
Under the current administration, the SEC has shifted its stance on crypto regulation, with the leadership embracing the technology and working on new rules. The agency is also developing wide-ranging rules, which are nearing the proposal stage, to provide greater certainty for the industry.