Proof-of-Work Cryptocurrency Mining does not trigger federal securities legislation, according to a Thursday staff statement from the US Securities and Exchange Commission (SEC), which told mining operators that they do not have to record their transactions with the controller.
The statement, published by SEC’s Division of Corporation Finance, stated that both the Solo Proof-of-Work Crypto Mining and collected Proof-of-Work Crypto Mining does not meet the definition of a securities transaction under the Howy Test-Test-Those Legal Framework, which is used to decide whether a transaction represents a investment contract. Reasonable expectation that the merits were exposed to take off from the penetrating or management efforts of others.
The statement puts any lingering fear that SEC’s enforcement department could turn its eyes on proof-of-work crypto-mining workers. Although the Agency, under the leadership of former President Gary Gensler, admittedly admitted that Bitcoin was a product rather than a security, the agency’s enforcement suit against Utah-based Green United, an alleged Ponzi scheme, was accused of resigning clients in a cloud-mining scheme, concerns among some in the industry, which would eventually crack down on legitimate Crypto-mining.
SEC said Thursday’s statement is “part of an effort to give greater clarity on the use of the federal securities laws on crypto assets” – something the industry has been pushing for years. Under the new leadership of acting chairman Mark Uyeda, who established a crypto-task force that was speared by crypto-friendly commissioner Hester Peirce, the agency has quickly begun to turn a course on its approach to crypto, dropping litigation and investigations started under gene and abolish the controversial staff of the accounting ball 121.
Thursday’s statement of staff comes shortly after SEC issued a similar staff statement in February, which declared that most Memecoins are outside the regulator’s jurisdiction.
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Under its new management, SEC has signaled a much greater willingness to collaborate with the crypto industry to create better, clearer rules that move on. On Friday, the agency will host a roundtable discussion about what makes a cryptocurrency a security – the first in a series of roundtable discussions between the regulator and the industrial participants.
