The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency transactions using personal wallets will not require registration or regulation as a brokerage firm. This latest statement from the agency's staff on cryptocurrency offers guidance for the industry, pending the establishment of permanent rules.
According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be considered brokerage firms, aligning with the agency's recent stance that software developers should not be subject to such regulations. To avoid being categorized as a brokerage firm, these interfaces must 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 interim guidance while it continues to consider regulatory issues related to cryptocurrency and the feedback it has received. Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and working towards clearer regulations.
While these statements do not carry the weight of formal rules, the agency is working on developing such rules, with wide-ranging proposals nearing completion. The SEC's efforts are concurrent with the Senate's work on the Clarity Act, which aims to codify cryptocurrency regulations into law.