SEC exempts the prisoner mining from the laws of securities, and enhances the confidence of the encryption market
On Thursday, the US Securities and Stock Exchange Committee (SEC) Explained Mining activities for the proof of work (POW) such as Bitcoin (BTC), Litecoin (LTC) and Cash (BCH) will not take place under the current securities laws.
This comes as a major organizational development, provides more certainty of the mining industry and enhances confidence in the broader cryptocurrency market.
In a statement on March 20, the SEC section addressed “the mining of the encryption assets associated with the fundamental association with the software performance of a public network and the lack of permission” and decided that the decentralized POW networks should not be dealt with as securities.
The SEC Entrepreneur Financing Department has explained that the POW is mining on Blockchain public networks that are not subject to the current European regulations. This means that individuals and mining gathering participants do not need to register their transactions with SEC under the Securities Law. This guidance is part of SEC’s ongoing efforts to improve encrypted currency regulations.
SEC also made clear that prisoners mining is not considered an investment contract under the Howe Test, which means that mining revenues are not considered securities. This is followed by the last SEC ruling that Memecoins are not securities and the conclusion of its 5 -year legal battle with Ripple.
Bitcoin (BTC) is the largest and most important family chain, but there are other metal currencies like Dogecoin (Doge), Litecoin (LTC) and Monero (XMR) as well. American organizers classified Bitcoin as a commodity, not safety, and this same opinion applies to Litecoin and Dogoin, according to the commodity futures trading committee.
These moves shed light on the shift towards cryptocurrency regulations clearer and more specific in the United States, rather than an implementation approach. The market did not interact strongly. Moreover, Trump’s speech at the top of digital assets caught more attention than the SEC Declaration.
During the era of US President Donald Trump, the digital asset markets, including the prisoners’ chains, are expected to grow.
