According to the US Securities and Exchange Commission, software that facilitates user interfaces for crypto securities transactions using individual wallets will not require registration or regulation as a brokerage firm. This latest statement from the SEC staff is part of a series of views on cryptocurrency, aiming to provide guidance to the industry in the absence of permanent rules. The statement emphasizes that websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's stance that developers should be able to create software without triggering regulations.
To avoid being classified as a broker-dealer, interface creators must ensure their platforms do not solicit investors for specific transactions, provide commentary on execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The SEC is providing these views as an interim measure while considering various regulatory issues related to cryptocurrency and evaluating feedback received. Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and working on rules to provide clarity to the industry. While these statements do not carry the same weight as formal rules, the agency is making progress on developing comprehensive regulations.