The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency securities transactions via individual wallets will not be subject to registration and regulation as a brokerage firm. This clarification is part of the agency's ongoing series of staff statements on cryptocurrency, aimed at providing guidance to the industry in the absence of formal regulations. The SEC staff 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 stance that software developers should be able to create programs without triggering such regulations. To avoid being considered a broker-dealer, the interface creators can take certain measures, including not soliciting investors for specific cryptocurrency transactions and not providing commentary on potential execution routes.
However, if the interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC is providing these views as an interim step while considering various regulatory issues related to cryptocurrency activities and feedback received.
Under the current administration, the SEC has shifted its stance on cryptocurrency regulation, with the leadership embracing the technology and working on formal rules. The agency is also exploring interim measures to provide greater certainty, while the Senate works on the Clarity Act to codify cryptocurrency regulations into law.