The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency securities transactions through self-hosted wallets will not be required to register and comply with brokerage regulations. This stance is in line with the agency's recent position that software developers should be able to create programs without triggering such regulations. To avoid being classified as a broker-dealer, the creators of these interfaces must ensure they do not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, give investment recommendations, handle user assets, take orders, or execute transactions. The SEC is providing this guidance as an interim measure while it continues to consider regulatory issues related to cryptocurrency securities activities.
Under the current administration, the SEC has shifted its stance to be more supportive of cryptocurrency regulation, with Chairman Paul Atkins working on developing rules to provide greater clarity and certainty for the industry.