The US Securities and Exchange Commission has announced that software enabling users to conduct cryptocurrency transactions through their personal wallets will not be required to register as a broker. This guidance is part of the agency's ongoing efforts to provide clarity on cryptocurrency regulations, and is intended to allow the industry to move forward in the absence of permanent rules.
The SEC has stated that websites or software used for securities transactions with self-hosted wallets will not be considered broker-dealers, provided they do not solicit investors, provide commentary on execution routes, offer financing, provide investment recommendations, handle user assets, take orders, or execute transactions. The agency has provided a checklist for interface creators to ensure they remain outside the regulatory scope.
This announcement is part of a broader shift in the SEC's approach to cryptocurrency regulation, which has become more accommodating under the current administration. The agency is working on developing formal rules, while also providing interim guidance to provide certainty for the industry.