The US Securities and Exchange Commission has announced that software providing user interfaces for crypto securities transactions using individual wallets will not require registration and regulation as a broker. This stance is outlined in the agency's latest staff statement on cryptocurrency, which aims to provide guidance to the industry in the absence of permanent rules.
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 regulations. To avoid being considered a broker-dealer, interface creators can take certain measures, including not soliciting investors for specific crypto asset securities transactions and not providing commentary on potential execution routes.
However, if an interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will be subject to regulation. The SEC is providing its 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 reversed its previous resistance to cryptocurrency and is now working on rules to provide greater clarity and certainty to the industry.