The U.S. Securities and Exchange Commission (SEC) has clarified that software enabling transactions of crypto securities through user wallets does not require registration as a broker. This guidance is part of the SEC’s broader list of staff statements on cryptocurrency, designed to facilitate industry progress pending permanent rules.
On Monday, the SEC stated that platforms or software allowing individuals to execute securities transactions via self-hosted wallets are not categorized under broker-dealers. This aligns with the agency’s stance that developers can create such software without invoking regulatory obligations. The SEC outlined specific measures creators must follow to remain outside regulatory purview, including avoiding solicitation of investors for particular crypto asset securities transactions and refraining from offering commentary on potential transaction routes.
If an interface offers financing, investment advice, manages user assets, accepts orders, or executes transactions, it falls within the SEC’s regulatory scope. The document emphasizes that these views are interim as the commission continues to explore broader regulatory issues in the crypto asset securities domain based on received feedback.
During President Donald Trump’s tenure, there was a shift towards more favorable crypto regulation. Under his administration and prior to Paul Atkins’ appointment as chairman, the SEC issued several statements indicating a more welcoming stance toward various crypto assets, suggesting they may not be classified as securities or subject to regulatory oversight. However, these statements lack the permanence of formal regulations.
Currently, under Atkins’ leadership, the agency is progressing towards formulating comprehensive rules. As the Senate works on the Clarity Act for establishing crypto regulations, the SEC continues developing interim measures to provide certainty in the industry.