The US Securities and Exchange Commission has announced that software enabling users to conduct crypto securities transactions through their individual wallets will not be required to register as a broker. This latest statement from the agency's staff provides guidance on the regulatory treatment of such software, indicating that it will not be considered a broker-dealer.
The SEC has outlined certain conditions that must be met for the software to avoid being classified as a broker, including not soliciting investors or providing investment recommendations. If the software offers financing, handles user assets, or executes transactions, it will fall under the agency's regulatory purview. The statement is part of the SEC's ongoing efforts to provide clarity on crypto regulations, with the agency working on developing formal rules.
The move is seen as a positive development for the crypto industry, which has been seeking clearer guidelines on regulatory requirements.