The US Securities and Exchange Commission has announced that software facilitating user interfaces for crypto securities transactions via individual wallets will not require registration and regulation as a broker. This latest staff statement from the agency provides guidance for the crypto industry, indicating that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with the agency's recent stance that developers should be able to create software without triggering such regulations. To avoid regulation, interface creators must ensure their platforms do not solicit investors for specific crypto asset securities transactions and refrain from providing commentary on potential execution routes. However, if an interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview.
The SEC is providing these views as an interim measure while considering various regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has reversed its previous resistance to crypto regulation, embracing the technology and working on rules to provide greater certainty for the industry.