The U.S. Securities and Exchange Commission (SEC) has clarified that proof-of-work (PoW) mining activities do not involve the offer or sale of securities.
No Need for Registration with the SEC
The SEC's division of corporation finance stated that PoW mining does not require registration under the Securities Act. Participants in mining activities are not obligated to register transactions or fall within the exemptions from registration requirements. This is based on the Howey Test, used to determine whether an asset qualifies as an investment contract.
Mining Pools and Their Classification
The SEC also addressed mining pools, which combine the computational power of multiple miners to share rewards. Like individual mining, mining pools are not considered to have an expectation of profits based on the efforts of others.
Implications for the Crypto Industry
This step is part of a broader shift in the SEC’s stance toward the crypto industry. The agency has rescinded controversial crypto accounting guidance and formed a task force to address securities-related issues.
The SEC's decision has brought significant legal clarity for Bitcoin miners and is expected to foster growth within the U.S. mining industry.
