The US Securities and Exchange Commission has stated that software providing user interfaces for cryptocurrency securities transactions using individual wallets will not require registration and regulation as a brokerage firm. In its latest staff statement on cryptocurrency, the SEC clarified that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, aligning with its recent stance that software developers should not be subject to 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 SEC is providing this guidance as an interim measure while it continues to consider regulatory issues related to cryptocurrency and reviews feedback. Under the current administration, the SEC has reversed its previous stance and is now embracing cryptocurrency technology, with plans to propose wide-ranging rules in the near future.