The US Securities and Stock Exchange Commission officially indicated that mining mining (POW), including individual mining and assembly operations, does not fall under federal securities regulations.
The advertisement, which was issued in a Employee statement On March 20, 2025, it provides a long -awaited clarification for Bitcoin workers and the broader encryption industry.
Crowning mining is just an administrative activity
The statement, issued by the SEC Enterprise Financing Department, confirms that encryption mining activities do not meet the criteria shown in the Howe Test, the legal standard used to determine whether the transaction is qualified as an investment contract.
Specifically, the agency stated that mining does not include
A reasonable expectation of profits from the efforts made or administrative to others
This means that it is not qualified as securities.
This decision is a major shift in the SEC approach to organizing cryptocurrency, especially under the leadership of the President Mark Oida, who gave priority to organizational transparency. The agency’s position removes concerns that legal encryption miners may face enforcement procedures similar to those targeting mining plans in the past.
A major shift under the leadership of the new SEC
According to the previous administration, led by former President Gary Ginsner, SEC’s organizational procedures have created uncertainty within the encryption sector. While Jinsler reluctantly acknowledged Bitcoin as a commodity instead of security, his agency lawsuit against Green United – a cloud mining company accused of managing the Ponzi scheme – had wanted fears that the agency may eventually target legitimate coding mining.
However, under the leadership of Uyeda, the agency adopted a significantly different approach. Al -Siddiq Commissioner for encryption has led Hyster Peres a new encoding business that was established aimed at reformulating the outdated regulatory policies. In addition to clarifying the coding mining rules, SEC recently canceled the controversial employee accounting bulletin 121, which has developed accounting requirements restricted to encryption custody services.
The decision is also in line with the previous provisions of the CFTC, which ranked bitcoin, Litecoin, and Dogecoin as commodities instead of securities.
