The US Securities and Exchange Commission has announced that software enabling user interfaces for cryptocurrency transactions through personal wallets will not be subject to registration and regulation as a brokerage firm. This stance is reflected in the agency's recent staff statements on cryptocurrency, which aim to provide guidance to the industry 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 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 feedback received. Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and working on rules to provide clarity and certainty to the industry.