Catenaa, Friday, March 21, 2025-The US Securities and Exchange Commission (SEC) stated Thursday that proof-of-work (PoW) mining does not involve the offer or sale of securities, marking a significant shift in the agency’s stance on cryptocurrency regulation.
In a statement from the SEC’s Division of Corporation Finance, the agency clarified that mining activities do not require registration under the Securities Act. The SEC applied the Howey Test—a standard used to determine if an asset qualifies as a security—to conclude that solo miners and mining pools do not meet the criteria.
“A miner’s self-mining is not undertaken with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others,” the statement read.
Mining pools, which combine computational power and distribute rewards, also do not qualify under securities laws.
The decision comes amid a broader regulatory shift following the departure of former SEC Chair Gary Gensler in January. Under Acting Chair Mark Uyeda, the agency has dropped several enforcement actions, rescinded controversial crypto accounting guidelines, and established a task force to reassess the classification of digital assets.
Cody Carbone, president of The Digital Chamber, welcomed the announcement, saying it provides “much-needed legal certainty” for the U.S. mining industry.
