The U.S. Securities and Exchange Commission has announced that software enabling users to transact with crypto securities through their personal wallets will not require registration as a broker.
This latest guidance from the agency aims to provide clarity for the crypto industry, which has been operating without permanent rules. The SEC has outlined specific conditions that must be met for the software to avoid being classified as a broker-dealer, including not soliciting investors for specific transactions and not providing commentary on potential execution routes. If the software offers financing, investment recommendations, or handles user assets, it will fall under the agency's regulatory purview. The SEC is working on developing more comprehensive rules for crypto asset securities activities, with Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.
In the meantime, the agency is providing interim guidance to provide greater certainty for the industry.