SEC Clarifies Crypto Wallet Software Rules

The Securities and Exchange Commission (SEC) has issued new guidance clarifying the distinction between crypto wallet software and brokers in digital asset transactions. The agency stated that certain interfaces used with self-custodial wallets may not require broker-dealer registration if they adhere to strict conditions. This clarification aims to provide regulatory certainty for developers and users of crypto wallets, particularly concerning their interaction with digital asset securities. The SEC's stance seeks to balance innovation with investor protection in the evolving crypto market.