The US Securities and Exchange Commission has announced that software creating 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 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 recent position that software developers should be able to create software without triggering such regulations. To avoid being considered a broker-dealer, the creators of these interfaces can take certain measures, including not soliciting investors for specific crypto asset securities transactions and not providing commentary on potential execution routes.
However, if the interface offers financing, provides investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under the agency's regulatory scope. The SEC is providing its views as an interim step while considering various regulatory issues related to crypto asset securities activities and the feedback received. Under the current administration, the SEC has reversed its previous resistance to cryptocurrency and is now embracing the technology. The agency is working on developing rules, with wide-ranging SEC rules 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.