LTC News: SEC Clarifies Securities Regulations for Proof-of-Work Mining Activities

In a recent move to provide clarity on the regulatory landscape for cryptocurrency mining, the U.S. Securities and Exchange Commission (SEC) has issued guidance on how federal securities laws apply to Proof-of-Work (PoW) mining activities. This development is significant for the crypto community, as it offers a clearer understanding of the legal framework governing this burgeoning industry.

SEC Issues Guidance on Proof-of-Work Mining and Securities Regulations

The U.S. Securities and Exchange Commission’s Division of Corporate Finance has clarified how federal securities laws apply to crypto mining activities, stating that Proof-of-Work (PoW) mining activities do not constitute securities transactions. The SEC explains that PoW networks operate as public, permissionless systems where miners validate transactions and maintain network security through computational efforts. The term “Covered Crypto Assets” has been introduced for tokens earned from PoW mining, with the process itself referred to as “Protocol Mining.” The commission acknowledged that mining activities are integral to network function.

SEC Confirms PoW Crypto Mining Exempt from Securities Law

The US Securities and Exchange Commission (SEC) has clarified that crypto mining under proof-of-work (PoW) protocols does not involve offering and selling securities. This applies specifically to assets such as Bitcoin (BTC) and Litecoin (LTC). In a statement on March 20, the SEC’s Division of Corporation Finance emphasized that participants in PoW mining do not need to register transactions with the Commission under the Securities Act of 1933. The focus of the SEC’s statement is on ’Protocol Mining,’ which includes activities related to validating transactions and maintaining network security on PoW-based blockchains.

SEC Clarifies Crypto Mining Stance, Senate Hearing Set for Crypto-Friendly Chair Nominee

The U.S. Securities and Exchange Commission (SEC) has clarified that proof-of-work (PoW) crypto mining does not trigger federal securities laws. This was stated in a staff statement released by the SEC’s Division of Corporation Finance on Thursday. The statement explicitly mentioned that both solo and pooled PoW cryptocurrency mining operations do not fall under its jurisdiction as they do not meet the definition of a securities transaction under the Howey Test. Additionally, a Senate hearing has been scheduled for Paul Atkins, President Trump’s nominee to lead the SEC, who is known for his supportive views on cryptocurrencies.

SEC Exempts PoW Mining from Securities Laws, Boosts Crypto Market Confidence

On Thursday, the U.S. Securities and Exchange Commission (SEC) clarified that mining activities for Proof-of-Work (PoW) cryptocurrencies will not fall under current securities laws. This includes cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH). The statement addressed the mining of crypto assets intrinsically linked to the programmatic functioning of a public, permissionless network and determined that decentralized PoW networks should not be treated as securities. This regulatory development offers more certainty for the mining industry and boosts confidence in the wider cryptocurrency market.