The US Securities and Exchange Commission has announced that software enabling user interfaces for cryptocurrency transactions with individual wallets will not require registration and regulation as a broker. This statement, the latest in a series of crypto-related views from the agency, aims to provide clarity for the crypto industry in the absence of formal rules. The SEC staff emphasized 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 not be subject to such regulations. To avoid being considered a broker, the creators of these interfaces must ensure they do not solicit investors for specific transactions, provide commentary on potential execution routes, offer financing, give 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 and the feedback received. Under the current administration, the SEC has shifted its approach to crypto regulation, with the leadership embracing the technology and issuing pro-crypto statements. The agency is working on formal 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 to cement crypto regulations into law, and the agency is developing interim measures to provide greater certainty.