SEC Ruling: Proof-of-Work Mining Not Subject To Securities Law

The US Securities and Trade Fee (SEC) has formally dominated that proof-of-work (PoW) cryptocurrency mining doesn’t represent securities buying and selling beneath US regulation.

Importantly, the SEC has clarified that Bitcoin, Litecoin, and Dogecoin are handled as commodities slightly than securities.

In accordance with a 21 March 2025 SEC assertion, “It is the Division’s view that participants in Mining Activities do not need to register transactions with the Commission under the Securities Act or fall within one of the Securities Act’s exemptions from registration in connection with these Mining Activities.”

To simplify this, particular person miners and mining swimming pools taking part in these networks usually are not topic to securities registration necessities.

SEC assertion on Proof-of-Work mining:

– Miners generate rewards through work, not entrepreneurial effort
– Due to this fact, no ‘funding contract’
– Mining = outdoors scope of Howey take a look at

TL;DR: PoW miners don’t provide / promote securities pic.twitter.com/zS1kvn9rUJ

— Bitcoin Laws (@Bitcoin_Laws) March 20, 2025

Because the US strikes towards clearer cryptocurrency rules beneath President Donald Trump, the SEC’s stance on mining provides much-needed certainty to the digital asset market.

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Trump’s Selection Of SEC Chair Nominee, Paul Atkins, To Face Panel Subsequent Week

NEW: @realDonaldTrump’s decide for @SECGov chair Paul Atkins will face the @BankingGOP subsequent Thursday for his nomination listening to. Trump’s decide for @USOCC, Jonathan Gould, will even have his listening to. pic.twitter.com/Ne91g0js9x

— Eleanor Terrett (@EleanorTerrett) March 20, 2025

On 27 March 2025, SEC Chair nominee Paul Atkins and Trump’s best choice for the place, will probably be dealing with the Senate Banking Committee to testify. Atkins, who can be a former fee of the SEC, will advance if the votes within the Senate are in his favour.

Notably, Atkins served as an SEC commissioner from 2002 to 2008. His background aligns intently with the cryptocurrency business.

Moreover, his biography on Patomak World Companions’ web site highlights his work with the Token Alliance, a crypto advocacy group. He has been concerned in growing greatest practices for digital asset issuances and buying and selling platforms since 2017.

If confirmed, Atkins’ appointment might characterize a seismic shift within the SEC’s regulatory stance towards cryptocurrency.

Below the Joe Biden administration, outgoing SEC Chair Gary Gensler took a stringent strategy to the crypto business. Gensler is thought for initiating enforcement actions towards a number of high-profile firms and tasks.

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Key Takeaways

The US SEC has formally dominated that proof-of-work cryptocurrency mining doesn’t represent securities buying and selling beneath US regulation.

The SEC’s clarifying assertion is seen as a long-awaited regulatory breakthrough for crypto miners.

SEC nominee Paul Atkins and Trump’s best choice for the place of SEC Chair, will probably be dealing with the Senate Banking Committee to testify in per week.