The U.S. regulatory body SEC has announced that cryptocurrency mining based on Proof-of-Work is not subject to current securities laws. This statement provides greater clarity for both the mining industry and the cryptocurrency market as a whole.
Details of the SEC Clarification
The SEC clarified that mining of cryptocurrencies like Bitcoin, Litecoin, and Bitcoin Cash, on decentralized public networks, is not considered an investment contract under the Howey Test. This eliminates the requirement for mining participants to register their transactions with the SEC.
Impact on the Crypto Market
This decision is part of the SEC's efforts to refine cryptocurrency regulations and boosts confidence in the mining industry. The market showed little reaction to the announcement as attention was diverted by Trump's speech at the Digital Asset Summit.
Future Prospects in the U.S.
Digital asset markets under the Trump administration are expected to grow. The U.S. Commodities Futures Trading Commission has classified Bitcoin as a commodity, not a security, and the same view has extended to Litecoin and Dogecoin.
This SEC clarification marks a significant step towards clearer and more defined cryptocurrency regulations in the U.S., potentially leading to further growth and development of the market.
