The US Securities and Exchange Commission has announced that software facilitating user interfaces for crypto securities transactions via individual wallets will not require registration and regulation as a broker. This stance is reflected in the agency's latest staff statement on crypto, which aims to provide guidance for the industry in the absence of permanent rules. According to the SEC, websites or software used for securities transactions with self-hosted wallets will not be considered part of the broker-dealer category, aligning with the agency's recent position that developers should be able to create software without triggering such regulations. To avoid being classified as a broker, interface creators can take certain measures, including not soliciting investors for specific transactions and not providing commentary on potential execution routes.
However, if an interface offers financing, provides 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 step while considering various regulatory issues related to crypto asset securities activities. Under the current administration, the SEC has shifted its stance on crypto regulation, with the leadership embracing the technology and working towards creating clearer rules. While these statements do not carry the same weight as full-fledged rules, the agency is working on developing such rules, with wide-ranging SEC rules nearing the proposal stage.