- SEC declared that Bitcoin and Dogecoin PoW mining does not violate U.S. securities law
- Now, Bitcoin and Dogecoin miners’ operations do not require securities registration
SEC has declared that proof-of-work crypto mining does not violate U.S. securities law, and miners are confident that their operations do not require securities registration.
More About the Importance of the SEC’s Changes Regarding PoW Mining
SEC regulations are crucial for crypto, and this one is fundamental. It is important how clear the message, which unequivocally states that proof-of-work crypto mining, which includes key crypto such as Bitcoin and Dogecoin, does not violate U.S. securities law, and miners are confident that their operations do not require securities registration.
They reason that:
“Miners are simply engaging in an administrative or ministerial activity to secure the network when they add computational resources.”
Additionally:
“Proof-of-work mining doesn’t constitute a security because miners’ expectation to receive rewards is not derived from any third party’s managerial or entrepreneurial efforts.”
All of this serves as a continuation of a major shift in SEC governance, the so-called Crypto Task Force designed to make the industry regulation more transparent, secure and efficient.
But it’s important to note that the SEC is separately looking at other types of mining depending on consensus mechanisms, such as Proof-of-Stake, which are used by equally key players like Ethereum, Solana, and others.
Conclusion
This is an important one because it clarifies one of the fundamental aspects of how cryptocurrencies are mined and the security and availability of the network are ensured.
Of course, the question is, how will the mining of cryptocurrencies that have their unique consensus mechanism be handled? But we will probably find out very soon, as the clarification of all aspects of crypto is in full force.
Stay tuned for updates, be adaptive in the rapidly evolving financial and crypto landscape, and keep your strategy grounded, balanced, and beneficial.
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