The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency transactions using self-hosted wallets will not require registration and regulation as a brokerage firm. This latest statement from the agency's staff on cryptocurrency aligns with their recent stance that software developers should be able to create programs without triggering regulatory requirements.
To avoid being classified as a brokerage firm, 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 agency is providing these guidelines as an interim measure while it continues to consider regulatory issues related to cryptocurrency and reviews feedback. Under the current administration, the SEC has shifted its approach to cryptocurrency regulation, embracing the technology and working on new rules to provide clarity and certainty for the industry.