The U.S. Securities and Exchange Commission said software that sets up user interfaces to trade crypto securities through individuals’ wallets will not need to be registered and regulated as a broker-dealer.
In the latest statement from agency staff on crypto SEC staff said Monday that websites or software used by people trading in securities with their self-hosted wallets will not themselves be considered to be in the broker-dealer category. This aligns with the agency’s recent position that developers should be able to write software without triggering such regulations.
The agency provided a checklist of steps creators of these interfaces can take to keep them outside the regulatory framework, including that it “does not solicit investors to engage in specific transactions in crypto asset securities” and “does not provide commentary on potential execution routes displayed to a user.”
If the interface offers financing, provides investment recommendations, manages user assets, takes orders or executes transactions, it no longer escapes the agency’s regulatory reach.
“Staff is providing its views on an interim basis while the Commission continues to review various regulatory issues related to crypto asset securities activities and comments it has received,” the document states.
Under President Donald Trump’s administration, which demanded that his executive branch pave the way for more crypto-friendly regulation, SEC leaders reversed previous resistance and embraced the technology. Even before SEC Chairman Paul Atkins arrived, a series of pro-crypto statements began to emerge, clarifying the regulator’s new view that various assets would not be considered securities or trigger supervisory requirements. But these declarations have neither the weight nor the greater permanence of rules in their own right.
In the meantime, the Atkins Agency is working on such rules. The SEC’s wide-ranging rules are close to proposal stage at the agency, he said. Even as the Senate continues to work on the Clarity Act that would solidify crypto regulations into law, the agency is working on interim measures to give it great certainty.
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