In its latest statement on cryptocurrency, the U.S. Securities and Exchange Commission has announced that software enabling users to transact with their individual wallets will not be required to register as a broker.
This move aligns with the agency's recent stance that software developers should be able to create programs without triggering regulatory requirements. To avoid being classified as a broker-dealer, the creators of these interfaces must ensure they do not solicit investors, provide investment advice, handle user assets, take orders, or execute transactions.
The SEC has provided guidelines for developers to follow, including avoiding commentary on potential execution routes and refraining from offering financing or investment recommendations. If an interface offers such services, it will fall under the agency's regulatory purview. The statement is part of the SEC's ongoing efforts to provide clarity on cryptocurrency regulations, with the agency working on proposing rules to provide greater certainty for the industry.