The US Securities and Exchange Commission has announced that software enabling users to execute crypto securities transactions through their personal wallets will not be required to register as a broker. This stance, outlined in the agency's latest staff statement on crypto, aligns with its recent position that software developers should be able to create such interfaces without triggering regulatory requirements. To avoid being classified as a broker-dealer, the software must not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, give investment advice, handle user assets, take orders, or execute transactions.
The SEC has provided guidelines for developers to ensure their interfaces remain outside the regulatory scope. The agency's interim guidance is part of its ongoing effort to clarify regulatory issues related to crypto asset securities activities. Under the current administration, the SEC has shifted its stance on crypto regulation, with leadership embracing the technology and working towards creating a more favorable environment.
The agency is currently developing rules to provide greater certainty, with wide-ranging proposals nearing the review stage. Meanwhile, the Senate is working on the Clarity Act to establish crypto regulations in law.