The US Securities and Exchange Commission has announced that software enabling users to conduct crypto securities transactions through their individual wallets will not be required to register as a broker. This latest statement from the SEC's staff provides clarity on the agency's stance regarding crypto regulations, emphasizing that websites or software used for such transactions will not be categorized as broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering regulatory obligations. To avoid being classified as a broker, the software must 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 working on developing comprehensive rules for crypto asset securities activities, with the agency's chairman indicating that wide-ranging rules are nearing the proposal stage. In the interim, the SEC is providing guidance through staff statements to offer clarity and certainty for the crypto industry.