The US Securities and Exchange Commission has announced that software enabling cryptocurrency transactions through individual wallets will not be subject to registration and regulation as a broker. This stance is reflected in the agency's latest staff statement on cryptocurrency, which aims to provide guidance to the industry in the absence of permanent rules. According to the statement, 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 software developers should not be bound by such regulations. To avoid regulatory oversight, interface creators can take certain measures, including refraining from soliciting investors for specific transactions and avoiding commentary on potential execution routes.
However, if an interface offers financing, provides investment advice, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory purview. The SEC is providing these guidelines as an interim measure while it continues to consider regulatory issues related to cryptocurrency and feedback from stakeholders. Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and reversing previous resistance.
The agency is working on developing comprehensive rules, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage. Meanwhile, the Senate is working on the Clarity Act, which aims to establish crypto regulations into law.