The US Securities and Exchange Commission (SEC) has clarified its stance on proof-of-work (PoW) cryptocurrency mining, determining that it does not constitute securities trading under US law.
This announcement provides clarity for crypto miners and the broader blockchain industry, confirming that mining activities on public, permissionless networks are not subject to securities regulations.
The decision may significantly impact Bitcoin, Dogecoin, and other PoW-based cryptocurrencies. PoW is a consensus mechanism used in mining to validate transactions and add new blocks to a blockchain.
In a statement released today, the SEC’s Division of Corporation Finance addressed concerns about “Protocol Mining,” concluding that such activities do not involve the “offer and sale of securities” under the Securities Act of 1933.
