The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions via individual wallets will not require registration or regulation as a brokerage firm. This stance is outlined in the agency's latest staff statement on cryptocurrency, which aims to provide clarity and allow the industry to progress in the absence of permanent regulations. The SEC staff stated that 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, provide investment advice, handle user assets, take orders, or execute transactions.
The agency is providing these views as an interim measure while considering various regulatory issues related to cryptocurrency and the feedback received. Under the current administration, the SEC has reversed its previous resistance to cryptocurrency and is working on developing rules to provide greater certainty.
The agency is also exploring interim measures to provide clarity, while the Senate works on the Clarity Act to cement cryptocurrency regulations into law.