The US Securities and Exchange Commission has announced that software providing user interfaces for cryptocurrency securities transactions through personal wallets will not require registration and regulation as a broker. In its latest staff statement on cryptocurrency, the SEC indicated 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 stance that software developers should be able to create programs without triggering regulations. The SEC has provided a checklist for interface creators to avoid regulatory oversight, including not soliciting investors for specific transactions and not providing commentary on potential execution routes.
However, if an interface offers financing, investment recommendations, handles user assets, takes orders, or executes transactions, it will fall under regulatory scrutiny. The SEC staff is providing its views as an interim measure while the commission considers crypto asset securities activities and feedback.
Under the current administration, the SEC has shifted its stance to support crypto-friendly regulation, with the agency working on proposing wide-ranging rules and interim measures to provide certainty.