PEPE0.00 1.90%

TON3.69 2.46%

BNB750.11 -0.40%

SOL162.03 -1.23%

XRP2.88 -1.60%

DOGE0.20 0.21%

TRX0.32 -0.84%

ETH3493.91 -0.30%

BTC114014.04 0.49%

SUI3.46 1.69%

Home

News

Article

SEC: Proof-of-Work Mining Not Subject to Securities Laws

Facebook Twitter Linkedin Email Copy Link

By BlockFlowMar 21, 2025

Part of an Effort to Provide Greater Clarity on the Application of the Federal Securities Laws to Crypto Assets.

The U.S. Securities and Exchange Commission's Division of Corporation Finance issued a statement on March 20 declaring that proof-of-work (PoW) mining activities do not constitute securities offerings under federal securities laws.

According to the SEC, neither solo mining nor mining pools meet the crucial "Howey Test" criterion requiring "reasonable expectation of profits derived from others' entrepreneurial or managerial efforts."

"Rewards are payments to the miner in exchange for services it provides to the network rather than profits derived from the entrepreneurial or managerial efforts of others," the statement explains.

The SEC described Thursday's announcement as "part of an effort to provide greater clarity on the application of the federal securities laws to crypto assets" — a priority that industry participants have advocated for over many years.

This regulatory shift comes under the leadership of Acting Chair Mark Uyeda, who established a Crypto Task Force led by Commissioner Hester Peirce. The agency has been rapidly changing its approach to cryptocurrency regulation, abandoning lawsuits and investigations initiated under former Chair Gary Gensler and repealing the controversial Staff Accounting Bulletin 121.

The determination applies specifically to mining of crypto assets linked to public, permissionless networks, while other crypto transactions still require case-by-case analysis under securities regulations.

Mining

BlockFlow

Where crypto flows differently.

Trending Now

Hong Kong’s Stablecoin Law Is Now in Effect — Is This the Rise of Eastern Stablecoins?

Aug 02, 2025

From Grassroots to Greatness: Robinhood’s $600 Billion Success Story

Aug 01, 2025

Decoding Hong Kong's Monetary Authority Guidelines: The Balance Between "Strictness" and "Flexibility" in Stablecoin Regulation

Jul 31, 2025

Ethereum at 10: Vitalik's Evolving Vision

Jul 31, 2025

2025 Second Half Crypto Forecast: Market Excitement Grows Around “Crypto-Equity” While Viability Remains Unclear

Jul 30, 2025

Subscription

TRENDING LOCALLY

Daily News: Visa Integrates EURC, Tether's Q2 $4.9B Net Profit, Mill City's $450M SUI Purchase of 76.3M Tokens, and More

Aug 02, 2025

Daily News: Fed Holds Rate Unchanged, White House Digital Asset Report Released, Hong Kong Requires Stablecoin Holding KYC, and More

Jul 31, 2025

Daily News: BitMine's $1 Billion Buyback, BTCS $2 Billion ETH Expansion, Whitefiber IPO Plans, and More

Jul 30, 2025

China's CCTV Spotlights Trump Crypto Tokens as Beijing Accelerates Blockchain Push Amid U.S. Regulatory Pressure

Jul 28, 2025

Daily News: US and EU Strike 15% Tariff Deal, US Extends China Tariff Suspension by 90 Days, $300M Token Unlocks Set for This Week, and More

Jul 28, 2025