Proof-of-Work Mining Not a Security Under Certain Conditions
- The SEC clarified that PoW mining on permissionless networks isn’t deemed an “offer and sale of securities” under the 1933 Act if specific conditions are met.
- The regulator stated that mining is an administrative activity — securing the network, validating transactions and earning rewards based on computational contribution.
- The ruling applies to individual miners, mining pools and operators, aligning with the SEC’s broader move to drop lawsuits against major crypto firms.
In a much-needed breather for miners, the US Securities and Exchange Commission (SEC) announced on Thursday that proof-of-work (PoW) mining does not violate securities laws, removing the need for such activities to be registered…
