The US Securities and Exchange Commission has announced that software enabling users to transact crypto securities through their personal wallets will not be required to register as a broker. This stance is outlined in the agency's latest staff statement on cryptocurrency, which aims to provide clarity and guidance to the industry in the absence of permanent regulations.
According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering such regulations. To avoid being considered 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 advice, handle user assets, take orders, or execute transactions. The SEC is providing these views as an interim measure while it continues to consider regulatory issues related to crypto asset securities activities and the feedback it has received.
Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and working on new rules to provide greater certainty. The agency is also working on interim measures to provide clarity, while the Senate works on the Clarity Act to cement crypto regulations into law.