In an important statement of 20 March, the American Securities and Exchange Commission (SEC) confirmed that crypto-mining activities based on proof-of-work (POW), such as Bitcoin-Mining, are not covered by federal securities legislation. This ensures long -awaited legal brightness. The sector operated for years in a twilight area.
The Division of Corporation Finance of the SEC clarifies that both solominers and participants in MiningPools that operate on networks such as Bitcoin are considered to be performers of administrative or technical services. So they are not seen as investors in securities. Rewards for Mining are therefore seen as “payments for services provided”. These are not considered proceeds from investment contracts. The SEC applies the Howey test and concludes that the profits of Miners stem from their own use of computing power. This is not the result of the entrepreneurship of a third party.
It is also emphasized that pole managers only play a coordinating role. For example, they are concerned with paying rewards or the maintenance of software. These tasks do not form a basis for classification as an securities manager.
This directive is in line with earlier steps of the SEC under the administration of Donald Trump. For example, it was stated in January that Memecoins without a central initiator or use value also does not fall under the securities legislation. The change of course marks a clear break with the stricter, enforcement-oriented policy under the Biden government. This government more often examined crypto initiatives.
Within the crypto industry, the statement of the SEC is received as a welcome development. This is particularly important for bitcoinminers. Due to the falling rewards after the recent halving, they have become extra vulnerable. The regulator invites the parties involved to contact the Office of Chief Counsel for further interpretation. This indicates space for dialogue and customization. This decision gives the mining sector a solid legal foundation in the United States. Certainly now that other countries, such as Norway, seem to want to close the door for Bitcoin Miners in recent years. During his campaign, Trump promised that all remaining BTC in the US will be mined. This chance is small. It is clear, however, that a new course is being sailed compared to crypto mining under Trump.
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Source: https://newsbit.nl/sec-biedt-duidelijkheid-proof-of-work-mining-valt-niet-onder-effectenwetgeving/
