SEC provides instructions on mining activities

On March 20, 2025, the US Securities and Stock Exchange Committee took a step towards clarifying its position in encryption mining activities. In a conversation statementSEC’s institutional financing department provided non -binding guidelines regarding the implementation of federal securities laws on work mining mining activities (POW), saying that such activities go beyond SEC’s jurisdiction. This step aims to provide greater clarity of the market amid the constant organizational uncertainty surrounding the encryption assets.

The statement deals with mining coding assets on public networks without permission using the POW consensus mechanism. POW mining includes the use of arithmetic resources to verify the health of transactions and add new blocks to the Blockchain network. Miners’ bonus with the newly written encryption assets of their efforts are rewarded.

The Institutional Finance Department concluded that the activities of prisoners mining do not involve the offer and sale of securities under the Securities Law or the exchange law, although they qualified their conclusion with data that indicate that any specific decision still depends on the facts and conditions of a specific arrangement.

The statement applies how to determine whether public mining activities constitute investment contracts. The test evaluates whether there is an investment in money in an institution with a reasonable expectation of profits from the efforts of others. The Securities and Stock Exchange found that prisoners mining did not fulfill these standards, as miners depend on their own efforts to gain rewards. The statement also clarified that the combination of mathematical resources in mining gatherings does not change the nature of the activity, as miners in the complexes still depend on their own efforts to gain rewards, and not on the efforts of others. Therefore, participants in these activities do not need to register such transactions with SEC under the Securities Law or fall within their exemptions.

The only Democratic Commissioner, Caroline Creensho, expressed its concerns about the statement, with a warning of his interpretation as “a wholesale exemption for mining.” She emphasized that the statement uses circular thinking to say that it is not binding, and that the Supreme Education Council will continue to evaluate mining activities on the basis of each case separately. Compare CRNSHAW mining statement Previous statement on Mimi currenciesAnd that I also believed to be a bad interpretation as a widespread exemption.

As the encryption industry continues to develop, organizational clarity remains very important to enhance innovation while protecting investors. Curd lovers may think that the latest data of the Securities and Stock Exchange Committee is a step in the right direction, but market participants should remain vigilant and remain aware of the ongoing organizational developments.