The US Securities and Exchange Commission has announced that software enabling users to engage in crypto securities transactions through their personal wallets will not be subject to registration and regulation as a brokerage firm. This stance is outlined in the agency's most recent staff statement on cryptocurrency, which aims to provide clarity and facilitate progress in the industry amidst the absence of permanent regulations. According to the SEC, 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 developers should be able to create software without invoking such regulations.
To avoid being considered a broker-dealer, the creators of these interfaces must adhere to specific guidelines, including refraining from soliciting investors for specific crypto asset securities transactions and avoiding commentary on potential execution routes. However, if the interface offers financing, provides investment advice, handles user assets, takes orders, or executes transactions, it will fall within the agency's regulatory purview.
The SEC is providing these views 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 cryptocurrency regulation, with the leadership embracing the technology and issuing pro-crypto statements. The agency is working on developing comprehensive rules, with SEC Chairman Paul Atkins indicating that wide-ranging rules are nearing the proposal stage.
Meanwhile, the Senate is working on the Clarity Act, which would codify crypto regulations into law, and the agency is developing interim measures to provide greater certainty.