The Supreme Education Council announces with mining exempt

Under the new administration, the US Securities and Stock Exchange Committee (SEC) has announced that the proof of mining is not subject to the laws of securities, and therefore, coding miners do not have to report their activities to SEC.

SEC explained its position on mining, noting that the scope of its statement applies only to proving work at this stage and that other policies can be established for other sectors in the encryption market.

SEC do not think about investing in an investment because there is no need to gain assets or expecting an investment. SEC is similar to mining in the lottery, as miners replace encryption puzzles, bonuses are random. They are not thinking about investing investment because it failed to test Howy Securities. They also point out that mining activities differ from other securities, such as stocks and bonds, with the basic asset and the achievement of revenues at a pre -determined rate. SEC also considers that mining pools are not safe because the complexes, despite the rental of operations, do not provide a specific return on investment.

“Accordingly, from the department’s point of view,” the Securities and Stock Exchange Commission wrote, “The participants in mining activities do not need to register their transactions with the committee under the Securities Law or fall within the exemptions of the Securities Law from registering regarding these mining activities.”

The Howe Test, a legal framework used to measure whether the transaction is an investment contract, to ignore mining as an investment because mining is not implemented with a reasonable expectation of profits.

The test wrote: “When assessing the economic facts of the treatment, the test is whether there is an investment in money in an institution based on reasonable expectations from the profits derived from the efforts made or administrative to others.”

“The federal courts have made clear since Haw that” Haw’s “efforts” to others “satisfy the requirements” of the efforts made by the investor, which are important to be uninterrupted, those basic administrative efforts that affect the failure or success of the institution. “

According to SEC, miners earn money through their computer power and the application of network protocols. Therefore, miners do not make profits from the efforts of others but make profits from their efforts. Miners earn money through the Blockchain bonus system and contribute to system operations. On the contrary, the investment contract will include investment in management or entrepreneurship for the Blockchain Group, with a return from this investment.

The Supreme Education Council explains that the mining factor does not extract profits from other people, as is the case with the work of the billiard operator. According to SEC, miners carry out administrative tasks, provide Blockchain and check the health of transactions instead of dealing with Blockchain as a guarantee. Moreover, and most importantly, SEC rejects even mining clusters as investments because miners, regardless of whether they use their computers or mining group, get profits only from their contribution. For example, the gathering mine worker does not receive a negative income from others mining.

Paul Ghrouwal, CEO Coinbase, called for the Supreme Education Council to distinguish between securities and commodities. He argues that such a directive will lead to a vibrant market of digital assets. Moreover, the Supreme Education Council previously ruled the Meme currencies, and determined that they did not meet the classification standards for securities.

However, Coinbase submitted FOIA request against SEC to discover the details of “war on encryption” and prevent such measures from occurring in the future. The new Trump administration has witnessed a reflection of the previous SEC actions. Announcing that encryption mining is not an investment contract is part of this reflection.