SEC issues guidance on proof-of-work mining and securities regulations

The Finance Division of Securities and Exchange Commission of the United States has published new directives on the exploitation of evidence of work, clarifying how federal securities laws apply to mining cryptographic activities.

THE statement describes the DRY The position on “exploitation of the protocol” and concludes that POW extraction activities are not transactions in securities.

The SEC explains that the work -proof networks work as public systems without authorization where minors validate transactions and maintain network security through calculation efforts.

It introduces the term “covered cryptographic active ingredients” for tokens won from POW exploitation and refers to the process itself as “protocol exploration”.

The Commission recognized that MINIOR ACTIVITIES Be integral with the network’s functionality and does not depend on the management efforts of a third party – a key factor to determine if an asset is considered to be security under the Howey test.

The SEC has also distinguished the different forms of mining, including mining (or solo), where individuals contribute to the computing power independently and mining pools, where several minors combine their resources.

Mining pools and their role

The SEC also addresses the role of mining pools, which aggregate calculation power to increase the chances of winning block rewards.

Although Pool operators coordinate resources, maintain infrastructure and distribute income, the SEC maintains that their role remains administrative or ministerial rather than managerial.

Consequently, participation in mining pools does not change the fundamental nature of the exploitation of protocol or introduces an investment contract structure.

This declaration provides essential regulatory clarity for minors operating in the United States. By confirming that POW extraction does not imply transactions in securities, SEC effectively removes uncertainty as to whether minors must record their activities or comply with the declaration requirements related to securities.

This decision could strengthen the confidence of mining companies, especially since the industry continues to deal with a regulatory examination on energy consumption and the environmental impact.