The US Securities and Exchange Commission (SEC) has officially announced that proof-of-work (PoW) cryptocurrency mining does not qualify as securities trading according to US law. This clarification indicates that cryptocurrencies like Bitcoin, Litecoin, and Dogecoin are treated as commodities rather than securities.
According to a SEC statement released on March 21, 2025, “It is the Division’s view that participants in Mining Activities do not need to register transactions with the Commission under the Securities Act or fall within one of the Securities Act’s exemptions from registration in connection with these Mining Activities.”
This means individual miners and pools are exempt from securities registration.
SEC statement on Proof-of-Work mining: – Miners generate rewards via work, not entrepreneurial effort
– Therefore, no ‘investment contract’
– Mining = outside scope of Howey test
TL;DR: PoW miners do not offer/sell securities — Bitcoin Laws (@Bitcoin_Laws) March 20, 2025
As the US under President Donald Trump heads towards clearer cryptocurrency regulations, the SEC’s decision aids significantly in providing certainty to the digital asset market.
Key Highlights
- The SEC’s ruling marks a significant regulatory breakthrough for crypto miners.
- SEC nominee Paul Atkins will testify before the Senate Banking Committee next week.
For more insights, explore the post on 10 Coins with High Returns: Crypto Forecast 2025.
