The US Securities and Exchange Commission has announced that software facilitating user interfaces for crypto securities transactions via individual wallets will not require registration or regulation as a broker. This clarification is part of the agency's ongoing efforts to provide guidance to the crypto industry in the absence of permanent rules.
The SEC staff has 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 stance that developers should be able to create software without triggering such regulations. To avoid regulatory scrutiny, interface creators can take measures such as not soliciting investors for specific crypto asset transactions and refraining from 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 this guidance as an interim measure while it continues to consider various regulatory issues related to crypto asset securities activities and the feedback it has received.
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. The agency is currently developing wide-ranging rules, which are nearing the proposal stage, and is also working on interim measures to provide greater certainty.