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 clarity on the crypto industry's regulatory landscape. 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 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, 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. Under the current administration, the SEC has shifted its stance on crypto regulation, embracing the technology and working on new rules.
While these statements provide clarity, they do not carry the same weight as full-fledged rules, which are currently in development.