Crying mining is not considered securities transactions

The US Securities and Stock Exchange Committee (SEC) and the Corporate Finance Department in the United States issued “a statement of some mining activities to prove work” today, saying that individual and group encryption mining activities (so -called work proof) are not considered securities transactions.

The United States announces that encryption mining is not securities transactions

🚨NEW: And Secgov I have just provided instructions on how to display some mining activities to prove work under the current securities laws.

Full guidance here: https://t.co/vbanz0pqlo pic.twitter.com/jcvl6zzouh

Eleanorterrett March 20, 2025

The document defines the US views of the SEC on mining of encryption assets, especially in the work proof networks (POW), which include activities such as verification of transactions and adding blocks to Blockchain. It focuses on how such activities are not qualified as a display or sale of securities under the Securities Law of 1933 and the 1934 exchange law.

The document determines that mining activities on POW networks, including mining and mining pools, do not constitute the sale of securities. Participants do not expect profits from the efforts of others (such as billiard operators), but from their own contribution to the mathematical force, which is an administrative mission and not a financial investment under the Howy Test.

Regardless, given that the assets of encryption used in mining do not qualify as listed securities, SEC considers that mining activities do not need to be registered under the Securities Law or the exchange law. Miners’ activities are seen as administrative efforts to support the network rather than investments that expect to profit from other entrepreneurship efforts.
In general, SEC has made clear that coding mining on POD networks, including individual mining and assembly, is not included under the American Securities Law due to the nature of activity that does not meet the criteria of “investment contract” as specified in the Howwey test.

Also read: SEC’s response to Coinbase: A possible turning point for identifying encryption sheets

Written by Rito Lavania

Ritu Lavania is a multi -use Web3 content creator with more than three years experience in the encryption space. It is part of the team in Cryptonewsz, where you write insightful and attractive content. She also contributed to Thecryptotimes and Coin Edition, where her work was well received by the encryption community. Maher in research, creative writing, senior economic officials, and job cooperation, creating content specifically designed for a varied audience. Population of education, devotes time to teaching children and expressing themselves through poetry. It always yearns for learning, constantly exploring new trends in Blockchain origin and digital assets. It strongly believes in telling stories to make complex encryption themes easier and attractive to readers all over the world.