The US Securities and Exchange Commission (SEC) has stated that software enabling users to transact crypto securities through their individual wallets will not require registration and regulation as a broker. This stance is reflected in the agency's latest staff statement on crypto, which aims to provide guidance to the industry in the absence of permanent rules. According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be considered part of the broker-dealer category, aligning with the agency's recent position that developers should be able to create software without triggering regulations.
To avoid being classified as a broker, the creators of these interfaces must ensure they do not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The SEC has provided a checklist of measures to help interface creators avoid regulatory issues. The agency's staff has emphasized that these views are interim and subject to change as the commission continues to consider 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 towards creating clearer rules. While these statements do not carry the weight of full-fledged rules, the agency is working on developing more comprehensive regulations.