SEC confirms the exempt Crypto mining from the stock law

The US Securities and Stock Exchange Committee (SEC) clarified its position on encryption mining under work proof protocols (POW), saying that mining activities do not include providing and selling securities. This applies to assets like bitcoin (BTC) And Litecoin (Ltc).

On March 20 statementThe SEC Enterprise Financing Department stated that the participants who participated in prisoners mining do not need to register transactions with the committee under the Securities Law of 1933 or qualify to obtain an exemption from registration.

Understand mining

SEC statement focuses on “protocol mining”, which includes activities related to verifying transactions and maintaining network safety on POW’s Blockchains.

This Blockchains operates without a central broker, based on miners who contribute to the arithmetic resources to verify transactions and network secure. On the other hand, miners receive rewards in the form of a newly prepared encryption, which the statement refers to as “covered encryption assets”.

SEC is distinguished by mining from activities that may constitute securities under Federal Law. The organizer believes that mining as a complex encoding puzzle solution to add new blocks to Blockchain, a process that does not require miners to own the original network encryption assets of the network.

Under the Howy Test, which determines whether the assets fall under the stock regulations, the arithmetic effort of miners is an administrative or ministerial activity instead of an investment contract.

Administrative role

The statement also addresses the role of mining gatherings, as individual miners bring mathematical resources to improve their chances of successfully verifying new blocs.

SEC confirms that miners participating in the complexes do not participate in securities transactions, as their profits derive from their mathematical contributions instead of the administrative efforts of a third party.

Billiards operators, who coordinate mining activities and distribute rewards, mainly participate in administrative jobs instead of the efforts made or administrative that will classify mining pools as stock offers.

The clarification of the Securities and Stock Exchange Committee provides organizational certainty of the participants in miners and participants in the mining complex, which enhances that their activities do not fall within the scope of federal securities laws.

By emphasizing that mining activities remain outside the definition of securities transactions, the statement guarantees that miners can continue their operations without the additional compliance with the rules of securities.

Mentioned in this article