The US Securities and Exchange Commission has issued a statement indicating that software facilitating cryptocurrency transactions via individual wallets will not require registration as a broker. This stance, outlined in the agency's latest staff statement on cryptocurrency, aims to provide clarity for the crypto industry 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 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 potential execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions. The SEC is working on developing more comprehensive rules, with Chairman Paul Atkins indicating that wide-ranging regulations are nearing the proposal stage.
In the interim, the agency is providing guidance through staff statements, which, although not as permanent as full-fledged rules, offer insight into the regulator's evolving stance on cryptocurrency.