CoinInsight360.com logo CoinInsight360.com logo
America's Social Casino
coinpedia 2025-03-21 07:01:11

SEC Exempts PoW Mining from Securities Laws, Boosts Crypto Market Confidence

The post SEC Exempts PoW Mining from Securities Laws, Boosts Crypto Market Confidence appeared first on Coinpedia Fintech News On Thursday, the U.S. Securities and Exchange Commission (SEC) clarified that mining activities for Proof-of-Work (PoW) cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH) will not fall under current securities laws. This comes as a major regulatory development, offering more certainty for the mining industry and boosting confidence in the wider cryptocurrency market. In a March 20 statement, the SEC division addressed the “mining of crypto assets that are intrinsically linked to the programmatic functioning of a public, permissionless network” and determined that decentralized PoW networks should not be treated as securities. PoW Mining on Public Blockchains Exempt from Securities Rules The SEC’s Division of Corporation Finance has clarified that Proof-of-Work (PoW) mining on public blockchain networks is not subject to current securities regulations. This means that individuals and mining pool participants do not need to register their transactions with the SEC under the Securities Act. This guidance is part of the SEC’s ongoing efforts to refine cryptocurrency regulations. The SEC also clarified that PoW mining doesn’t qualify as an investment contract under the Howey Test, which means the proceeds from mining aren’t considered securities. This follows the SEC’s recent ruling that memecoins aren’t securities and the conclusion of its 5-year legal battle with Ripple. A Shift Towards Clearer Rules Bitcoin (BTC) is the largest and most important PoW chain, but other coins like Dogecoin (DOGE), Litecoin (LTC), and Monero (XMR) are also notable. U.S. regulators have classified Bitcoin as a commodity, not a security, and this same view applies to Litecoin and Dogecoin, according to the Commodity Futures Trading Commission. These moves highlight a shift toward clearer, more defined cryptocurrency regulations in the U.S., rather than an enforcement-focused approach. The market didn’t react strongly. Besides, Trump’s speech at the Digital Asset Summit took more attention away from the SEC’s announcement. Under U.S. President Donald Trump, digital asset markets, including PoW chains, are expected to grow.

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.