SEC Confirms Proof-of-Work Crypto Mining Exempt from Securities Laws
The U.S. Securities and Exchange Commission (SEC) stated that proof-of-work cryptocurrency mining does not trigger federal securities laws. Mining operators are not required to register their transactions with the SEC.
- Both solo and pooled proof-of-work mining do not qualify as securities transactions under the Howey Test.
- The SEC clarified that these activities are not conducted with a reasonable expectation of profits from others' efforts.
- This statement alleviates concerns about potential SEC action against legitimate crypto miners.
- The agency has shifted its stance under Acting Chair Mark Uyeda, reversing previous enforcement approaches initiated by former Chair Gary Gensler.
- The SEC aims to provide more clarity on federal securities laws related to crypto assets.
- A roundtable discussion is planned to explore what constitutes a security in cryptocurrency.
This follows a recent statement declaring most memecoins outside the SEC's jurisdiction. The SEC is pursuing a cooperative approach with the crypto industry for clearer regulations.