The U.S. Securities and Exchange Commission (SEC) has officially stated that Proof-of-Work mining, including Bitcoin and Litecoin, is not a securities transaction.
Technical Nature of Mining
In a statement dated March 20, the SEC explained that cryptocurrency mining is a technical process which does not require registration under the Securities Act of 1933.
Mining Pools Not Investment Schemes
Mining pools, where efforts are combined to increase computational power, are not considered investment schemes. The SEC rejects the idea that such collaborations are subject to securities regulation.
Regulation of the Crypto Sector
Despite the status of mining, the SEC continues to scrutinize crypto projects, including tokens and staking programs, indicating ongoing legal assessment of the industry.
The SEC's decision is a significant relief for miners, lending legitimacy to their operations, but the broader crypto industry remains under watchful regulatory eyes.
