The U.S. Securities and Exchange Commission (SEC) has stated that mining on proof-of-work (PoW) blockchains is not an offer and sale of securities as long as particular conditions are met.
SEC's Stance on Mining
On March 20, the SEC released a statement clarifying that the mining of crypto assets intrinsically linked to a public, permissionless network should not be considered as securities offerings. This stance applies to decentralized PoW networks that utilize mining as a part of their consensus mechanism.
Bitcoin and Other PoW Blockchains
Although the SEC's statement did not specify particular blockchains, its position is relevant to networks such as Bitcoin, Dogecoin, Litecoin, and Monero. These projects have long been viewed by U.S. regulators as commodities rather than securities.
Policy Impact on Crypto Markets
Under the leadership of President Donald Trump, digital assets, including PoW chains, are poised for growth. With a pro-crypto advisor at the helm, the administration is committed to making the U.S. a leader in blockchain and cryptocurrencies.
The SEC's position on PoW networks could significantly affect the overall crypto market, fostering growth and attracting investments.
