The U.S. Securities and Exchange Commission (SEC) has issued new guidance clarifying that proof-of-work (PoW) mining activities, including solo and pool mining, do not constitute securities transactions. This ruling applies to Bitcoin and other cryptocurrencies that use the PoW mechanism, stating that miners do not need to register their transactions with the SEC. The SEC's Division of Corporation Finance has taken the position that PoW mining involves only the contribution of computational resources, rather than reliance on the efforts of others, which is a key factor in determining whether an activity falls under securities laws. This guidance provides clarity for the cryptocurrency mining industry, particularly for Bitcoin miners, by confirming that their activities are not subject to securities regulations. The decision is seen as a win for the decentralization of Bitcoin and other PoW networks. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
