SEC Says Crypto Wallet Transaction Interfaces Don't Need Broker Registration

The U.S. Securities and Exchange Commission said software that provides a user interface enabling crypto asset securities transactions through individuals' self-hosted wallets does not need to register or be regulated as a broker. In a staff statement released Monday—part of a growing set of interim guidance meant to help the industry operate while formal rules are still being developed—SEC staff said websites or software used to facilitate securities transactions via self-custodied wallets would not, by itself, fall into the broker-dealer category. The position aligns with the regulator's recent view that developers should be able to build software without automatically triggering broker regulation. The SEC also included a checklist of steps interface providers can take to remain outside broker oversight. Among them: the tool "does not solicit investors to engage in any specific crypto asset securities transactions" and "does not provide commentary on any potential execution route(s) displayed to a user." The agency said the exemption no longer applies if the interface offers financing, provides investment recommendations, holds or handles user assets, takes orders, or executes transactions. "The staff is providing its views as an interim step while the commission continues to consider various regulatory issues relating to crypto asset securities activities and the feedback it has received," the document said. Under President Donald Trump's administration—which has called on agencies to make room for more crypto-friendly regulation—SEC leadership has shifted away from earlier resistance and toward embracing the technology. Even before SEC Chairman Paul Atkins took office, the agency issued a series of pro-crypto staff statements indicating that certain assets would not be treated as securities or would not trigger oversight requirements. Those statements lack the durability of formal rulemaking. Atkins has said broader SEC crypto rules are nearing the proposal stage. In parallel, the Senate continues work on the Clarity Act, which would codify crypto regulation in law, while the SEC pursues interim measures aimed at providing greater certainty. Read More: SEC makes quiet shift to brokers' stablecoin holdings that may pack big results