SEC confirms proof-of-work mining not considered securities dealing
The SEC confirms that PoW mining is not securities dealing
The U.S. Securities and Exchange Commission (SEC) has formally stated that proof-of-work (PoW) mining does not constitute the offer and sale of securities, provided it meets specific criteria.
In a March 20 statement, the SEC’s Division of Corporation Finance clarified its stance on "Covered Crypto Assets" and "Protocol Mining," affirming that mining on public, permissionless PoW networks should not be classified as securities activities under the Securities Act of 1933.
Although the SEC did not explicitly name any blockchain, this ruling applies to decentralized networks that rely on PoW for consensus. The decision benefits solo miners and mining pools, ensuring their activities are not subject to the same regulatory scrutiny as securities issuers. Bitcoin (BTC) remains the dominant PoW blockchain, but others such as Dogecoin (DOGE), Litecoin (LTC), and Monero (XMR) also follow this model.
The clarification aligns with the Commodity Futures Trading Commission's (CFTC) view that Bitcoin, Litecoin, and Dogecoin are commodities rather than securities. This provides further legal certainty for miners, investors, and firms operating within these ecosystems.
Pro-crypto shift in U.S. policy
The SEC’s statement comes amid a broader shift in U.S. crypto policy under President Donald Trump, who has committed to positioning America as a leader in blockchain and digital assets. His administration is actively working toward friendlier regulatory frameworks, including replacing SEC Chair Gary Gensler with a pro-crypto appointee.
Additionally, the administration established the Council of Advisers on Digital Assets, which is focused on developing clear, business-friendly regulations for the industry. On March 19, the council’s executive director Bo Hines announced that a comprehensive stablecoin bill could be introduced within months, signaling potential legislative progress.
The same day, Kristin Smith, CEO of the Blockchain Association, revealed that lawmakers are working on a cryptocurrency market structure bill, expected to be completed by August 2025. These developments reflect increasing momentum toward formalizing digital asset regulations, a key concern for institutional investors.
Future implications
The SEC’s recognition that PoW mining does not constitute securities dealing is a positive step for the crypto industry, reducing regulatory uncertainty for Bitcoin miners and other PoW networks. With pro-crypto sentiment growing in Washington, the coming months may bring additional legislation, particularly in stablecoins and broader market structure.
As the U.S. government moves toward a more supportive stance on digital assets, the industry is poised for potential expansion, with clearer rules likely to encourage further institutional adoption.
