According to the U.S. Securities and Exchange Commission, software that facilitates cryptocurrency wallet transactions will not require registration and regulation as a broker. This latest stance from the agency is part of a series of staff statements aimed at providing guidance to the crypto industry in the absence of permanent rules.
The SEC staff has 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 recent 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, provide commentary on potential execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The agency is providing these views as an interim measure while it continues to consider regulatory issues related to crypto asset securities activities.
Under the current administration, the SEC has reversed its previous resistance to cryptocurrency and is now working on proposing wide-ranging rules to provide greater certainty to the industry.