The US Securities and Exchange Commission has announced that software enabling user interfaces for crypto securities transactions through self-hosted wallets will not require registration and regulation as a broker. This statement, the latest in a series of crypto-related views from the agency, aims to provide guidance for the crypto industry in the absence of permanent rules. The SEC staff clarified that websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's recent position that developers should be able to create software without triggering regulations. To avoid being classified as a broker-dealer, the software creators must ensure their interfaces do not solicit investors for specific crypto asset securities transactions, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions.
The agency is working on interim measures to provide certainty, with wider-ranging rules nearing the proposal stage. The SEC's stance has shifted under the current administration, which has encouraged a more favorable regulatory environment for crypto. While these statements provide guidance, they do not carry the same weight as full-fledged rules, which are currently being developed.