According to the SEC, software that facilitates user interfaces for crypto securities transactions using individual wallets will not require registration and regulation as a brokerage firm. This stance is outlined in the agency's latest staff statement on cryptocurrency, which aims to provide guidance to the industry in the absence of permanent regulations. The SEC has specified that websites or software used for securities transactions with self-hosted wallets will not be classified as brokerage services, aligning with its recent position that software developers should not be subject to such regulations.
To avoid being considered a brokerage service, the creators of these interfaces must adhere to certain guidelines, including not soliciting investors for specific 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 measure while it continues to consider various regulatory issues related to cryptocurrency and the feedback it has received. Under the current administration, the SEC has shifted its stance on cryptocurrency, embracing the technology and working towards clearer regulations.
While these statements do not carry the same weight as full-fledged rules, the agency is working on developing such rules, with wide-ranging proposals expected to be introduced soon.