The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency securities transactions using individual wallets will not require registration or regulation as a brokerage firm. This statement is the latest in a series of staff views on cryptocurrency, intended to guide the industry forward in the absence of permanent regulations.
According to the SEC, 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 software developers should be able to write code without triggering such regulations. To avoid being considered a broker-dealer, 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 advice, handle user assets, take orders, or execute transactions. The agency is providing these views as an interim measure while it continues to consider regulatory issues related to cryptocurrency and the feedback it has received. Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and working on new rules to provide clarity and certainty for the industry.