The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency transactions with self-hosted wallets will not require registration and regulation as a broker. This clarification is part of the agency's ongoing efforts to provide guidance to the crypto industry in the absence of permanent rules.
According to the SEC, websites or software used for securities transactions with individual wallets will not be classified as broker-dealers, aligning with the agency's recent stance that developers should be able to create software without triggering such regulations. To avoid being considered a broker-dealer, the interface must not solicit investors, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The SEC is working on interim measures to provide regulatory clarity, with wider-ranging rules expected to be proposed soon. This development reflects the agency's shift towards a more crypto-friendly approach under the current administration.