SEC says proof-of-work mining does not constitute securities dealing

Quick Summary:

The statement applies to solo miners and mining pools participating in such networks. The SEC’s Division of Corporation Finance gives its view on PoW “protocol mining activities.” Source: SECAlthough Bitcoin (BTC) is by far the largest and most significant PoW chain, there are several others, including Dogecoin (DOGE), Litecoin (LTC) and Monero (XMR).

The US Securities and Exchange Commission’s Division of Corporation Finance has clarified its views on proof-of-work mining, arguing that such activities do not constitute “the offer and sale of securities” as outlined in the Securities Act of 1933, so long as they meet certain criteria.

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.

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Article Details

Author / Journalist: Cointelegraph by Sam Bourgi

Category: Crypto

Markets: United States

Topics: Mining Permissionless Bitcoin Activities Networks Crypto Securities Statement Clarified Division Blockchain

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-20 @ 19:45:00 (23 hours ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 376 words

Reading Time: 3 minutes read

Sentences: 13 lines

Sentence Length: 29 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 27199514

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