The US Securities and Exchange Commission has announced that software enabling user interfaces for crypto securities transactions via individual wallets will not require registration or regulation as a brokerage firm. This stance is reflected in the agency's recent staff statements on cryptocurrency, which aim to provide guidance to the industry in the absence of permanent 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 position that developers should be able to create software without triggering such regulations. To avoid being considered a broker-dealer, the interface must not solicit investors for specific transactions, 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 cryptocurrency and feedback received. Under the current administration, the SEC has shifted its stance to support the development of cryptocurrency regulations, with the agency's leadership working on creating rules to provide greater certainty. Meanwhile, the Senate is working on the Clarity Act to cement cryptocurrency regulations into law.