Proof work does not violate securities law – TradingView News

The American Securities and Exchange Commissions clarified their position on the cryptocurrian period for proportion (hist), reigning not to trade securities within the American Law.

This statement provides a long-awaited clarity for crypto miners and a wider block industry, which confirms that mining activities are not included in securities regulations when they are implemented in public, allowed networks.

The decision could have significant implications for Bitcoin, Dogekoin and other wound-based cryptic. Proof of work (POV) is a consensus mechanism used in cryptocurnent mining to confirm transactions and add new blocks to the block.

In a statement published today (Thursday), the Sectoral Division of Finance Corporation applied for concern about the “Mining Protocol”. The regulator has determined that such mining does not include “offer and sales of securities” within the Law on Securities 1933. Years.

SEC’s view of prisoner mining

“It is a division opinion that” mining “does not include the offer and sale of securities in 1933 (1) of the Securities Act) and Section 3 (A) (10) of the Labor Labor 1934. years.

“Therefore, this is a division opinion that mineral activity participants do not necessarily register transactions with the Commission under the Law on Securities or Falling within one of the ECT Securities Registration in relation to these mining activities.”

This means that some miners and mining pools participating in these networks are not subject to securities registration requirements. Although the statement did not appoint certain blocks, the government refers to large networks of captured networks such as Bitcoin and Dogecoin, which rely on mining as their consensus mechanism.

Commission for trade in trade Futures (CFTC) has already classified Bitcoin and other prisoners’ property, such as Litekoin and Dogcoin, as a commodity, not securities.

The SEC paragraph ensures that miners can continue their business without dealing with regulatory uncertainty. The decision also applies to solo miners and mining pools, which confirmed that mining activities remain outside the scope of securities law.

This difference is crucial for miners who invest significant resources in calculation power and energy costs to ensure blocks networks. Mining pools, where multiple miners combine their computer resources to improve the chances of earning awards, also fall under this exemption.

Implications for crypto miners

Pool operators can coordinate mining efforts and distribute rewards without activating securities law, provided they are working within which it is provided within the framework.

The SEC clarification comes in the middle of wider regulatory changes under the US President Donald Trump Administration. Trump positioned himself as a pro-crypto leader, authorizing to make us global hubs for blocks and digital assets. His administration was established by the Council of the Digital Development Advisor for industrial regulations.

With the Certificate of SEC that mining dies does not represent the securities, Bitcoin and other cryptocurrency for Ranges can see the renewed trust of investors and miners. As they are now moving towards clearer CRIPTO regulations, the latest paragraph of SEC offers many necessary security to the digital market market.