The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency transactions via personal wallets will not require registration or regulation as a brokerage firm. This stance, expressed in the agency's most recent staff statement on cryptocurrency, aligns with its efforts to provide guidance to the industry in the absence of permanent regulations. The SEC staff emphasized that websites or software used for securities transactions with self-hosted wallets will not be classified as broker-dealers, consistent with the agency's position that developers should be able to create software 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 execution routes, offer financing, give 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, embracing the technology and working towards clearer regulations. The agency is developing rules to provide greater certainty, and SEC Chairman Paul Atkins has indicated that wide-ranging rules are nearing the proposal stage.