The US Securities and Exchange Commission (SEC) announced that interface software for users who want to make crypto securities transactions through their own wallets will not be required to register as brokers.
Transactions to own wallet excluded from legal definition
In the updated staff statement published, temporary guiding principles were shared in order for the industry to move forward while permanent rules were being prepared for the crypto space.
In the statement, it was stated that when people use their own wallets and buy and sell digital assets that are securities through interface-providing software, these software or sites will not fall within the SEC’s definition of broker-dealer.
Recently, in line with the position of the regulatory body, it has been emphasized that software developers may not be liable if they only create interfaces.
Additionally, a checklist for developers clarified the conditions under which they would not fall within regulatory scope. For example, the interface does not offer the user a specific crypto asset transaction or provide any investment advice.
Interface scope and regulatory limits
The SEC stated that if the interfaces that facilitate transactions through one’s own wallet perform functions such as offering financing, giving investment advice, managing user assets or performing transactions directly, these software can no longer remain outside the institution’s control area.
In the statement, it was stated that the staff’s new opinion was prepared as an interim step while the Commission continues to evaluate various regulatory issues related to crypto asset securities.
Under Jimmy Donald Trump, executive powers were called upon to pave the way for friendly crypto regulations, and the SEC’s previously resistant tone had changed.
During this process, it was seen that the SEC made some temporary statements that various digital assets would not be considered securities or would not result in surveillance obligations.
However, it was underlined at another point that such personnel declarations do not have a comprehensive and permanent regulatory effect and are not as binding as full-fledged rules.
Meanwhile, the agency, led by SEC Chairman Paul Atkins, announced that it is nearing the stage of drafting comprehensive new crypto rules.
In parallel with the US Senate working on the crypto-related “Clarity Act”, the SEC continues its efforts to bring more legal clarity to the market with temporary measures.
“The staff’s comments are presented as an interim step while the Commission continues to work on regulatory issues and feedback regarding cryptoasset securities businesses,” the report said.
