# Bitcoin Digging Achieves a Significant Triumph in US Rule-making
The US Securities and Exchange Commission (SEC) has issued a revolutionary declaration elucidating that Proof-of-Work (PoW) digging is not governed by US securities statutes.
In a new pronouncement, the SEC’s Division of Corporation Finance unambiguously asserted that neither autonomous nor collective digging of PoW digital currencies implicates securities statutes.
The SEC contends that Bitcoin digging does not entail a rational anticipation of gain derived from the undertakings of others. Diggers devote their computing resources to garner compensations and safeguard the network. Any prospective gain anticipation in collective digging does not originate from the undertakings of the collective operators.
Certain undertakings of collective operators that may advantage diggers do not fulfill the criteria of the Howey Test, which ascertains whether a transaction qualifies as an investment agreement and is governed by securities statutes.
Bitcoin is the most substantial PoW digital currency. Additional instances encompass Dogecoin (DOGE), Litecoin (LTC), and Monero (XMR).
In June 2018, the SEC avowed that Bitcoin and Ethereum were not securities. Former SEC Chairman Gary Gensler, notorious for his anti-crypto disposition, has consistently echoed this perspective for Bitcoin.
Nevertheless, Ethereum’s lawful status turned out to be more intricate following its shift to Proof-of-Stake in December 2020. Gensler has persistently evaded inquiries about whether the token is a security.
This newest declaration on Proof-of-Work is the SEC’s most up-to-date endeavor to convey regulatory lucidity to the industry.
In a drastic policy turnaround, the SEC has now dismissed numerous legal actions against distinguished enterprises such as Kraken and Coinbase. The agency has also relinquished its entreaty against Ripple. Canary Capital Requests ETF, PENGU Value Increases
