The U.S. Securities and Exchange Commission (SEC) has released updated instructions clarifying how federal securities regulations apply to proof-of-work (PoW) digital currency mining operations. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
The SEC acknowledges that PoW networks function as public, permissionless systems where miners verify transactions and maintain network security through computational labor. The agency states that PoW mining operations, in and of themselves, do not constitute securities transactions.
According to the SEC, mining operations are an essential component of network functionality and do not rely on the managerial efforts of third parties. This is a crucial factor in determining whether an asset qualifies as a security under the Howey Test. The SEC refers to tokens obtained from PoW mining as “protocol mining” and the resulting crypto assets as “regulated crypto assets.”
The SEC also addresses the role of mining pools, which aggregate computing power to increase the chances of earning block rewards. The agency distinguishes between solo mining, where individuals independently contribute computing power, and pool mining, where multiple miners combine resources.
Involvement in a mining pool does not change the basic nature of protocol mining or introduce an investment contract structure. While pool operators coordinate resources, maintain infrastructure, and distribute payouts, the SEC maintains that their role remains administrative rather than managerial.
These updated instructions provide much-needed regulatory clarity for miners operating in the United States.
The U.S. Securities and Exchange Commission (SEC) has made it clear that Proof-of-Work (PoW) mining does not include securities transactions. This is very important because it suggests that miners do not have to worry about registering with the SEC or complying with securities reporting regulations. This action is expected to increase confidence among mining companies, especially as they face increased regulatory control over energy consumption and environmental impact. Toncoin (TON) Value Forecast for March 26th
