The US Securities and Exchange Commission has announced that software facilitating cryptocurrency transactions through individual wallets will not be required to register as a broker. This latest statement from the agency's staff provides guidance on the crypto industry, aiming to facilitate its development in the absence of permanent regulations.
According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, aligning with the agency's recent stance that software developers should not be subject to such regulations. To avoid being classified as a broker-dealer, the software 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 has provided a checklist for creators of these interfaces to ensure they remain outside the regulatory scope.
The agency's staff has stated that these views are interim measures while the commission continues to consider regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has shifted its stance on crypto regulation, embracing the technology and working on rules to provide greater certainty. The agency is developing wide-ranging rules, which are nearing the proposal stage, while the Senate works on the Clarity Act to cement crypto regulations into law.