The Securities and Exchange Commission (SEC) has reassured miners concerned about regulatory oversight by making it clear that Proof of Work (POW) cryptocurrency mining does not violate federal securities laws.
In a statement, the SEC’s corporate finance division said mining operators do not need to register transactions with regulators.
The SEC findings suggest that both solo and pooled powder mining do not meet the standards for securities trading based on the Howey test. This legal framework evaluates whether a transaction constitutes an investment agreement by determining whether there are reasonable expectations of profit based on the efforts of others. According to the SEC, Pow Mining lacks this component, which exempts securities regulations.
The largest cryptocurrencies that use the proof of work mechanism can be listed as follows:
- Bitcoin (BTC)
- dogecoin (doge)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Monero (XMR)
- Ethereum Classic (etc.)
- Kaspa (what)
- Bitcoin SV (BSV)
- ZCASH (ZEC)
- Beldex (BDX)
- Conflux (CFX)
- ecash (xec)
- Real (VRSC)
- Dash (dash)
The announcement eases concerns that the SEC’s executive division may target Pow Crypto Miners. Under former chairman Gary Gensler, the agency claims that Bitcoin is a commodity rather than security, but is pursuing enforcement action if it involves allegations of fraudulent mining schemes such as Utah-based Green United. This has led to industry fears that legitimate prisoner mining operations could face regulatory scrutiny.
*This is not investment advice.
