The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency transactions using self-hosted wallets will not be required to register as a broker-dealer. This stance is reflected in the agency's latest staff statement on cryptocurrency, which aims to provide guidance to the industry in the absence of permanent regulations. According to the SEC, websites or software that enable individuals to engage in securities transactions using their own 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 that their software does not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, provide investment advice, handle user assets, take orders, or execute transactions.
The SEC has provided a checklist of measures to help developers avoid regulatory oversight. The agency's staff has stated that these views are interim and subject to change as the commission continues to consider regulatory issues related to cryptocurrency and reviews feedback.
Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and working towards creating a more favorable regulatory environment. The agency is currently developing rules to provide greater clarity and certainty for the industry, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.