According to the US Securities and Exchange Commission, software that enables user interfaces for crypto securities transactions via individual wallets will not require registration and regulation as a broker. This stance is outlined in the agency's latest staff statement on cryptocurrency, which aims to provide clarity and allow the crypto industry to move forward in the absence of permanent rules.
The SEC staff emphasized 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 position that developers should be able to create software without triggering such regulations. To avoid being considered a broker, the creators of these interfaces must ensure they do not solicit investors for specific crypto asset securities transactions and refrain from providing commentary on potential execution routes. 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 it continues to consider various regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has shifted its stance, embracing cryptocurrency and working towards clearer regulations. While these statements do not carry the weight of full-fledged rules, the agency is working on developing such rules, with wide-ranging SEC rules nearing the proposal stage.