SEC Decision: Proof-of-Work Block rewards Exempt from Securities Regulation
The US Securities and Exchange Commission (SEC) has made an official decision stating that proof-of-work (PoW) digital currency block rewards is not considered securities trading according to US legislation.
Notably, the SEC has made it clear that BTC, Litecoin, and Dogecoin are categorized as commodities instead of securities.
As per a statement from the SEC dated 21 March 2025, “It is the Division’s perspective that individuals involved in Block rewards Activities are not required to register transactions with the Commission under the Securities Act or be grouped under any exemptions from registration per the Securities Act related to these Crypto mining Activities.”
In simpler terms, individual miners and crypto mining pools engaged in these networks do not have to meet securities registration obligations.
SEC news regarding Proof-of-Work mining:
– Miners earn rewards through effort, not through entrepreneurial initiatives
– Consequently, no ‘investment contract’
– Block rewards = outside the realm of the Howey testSummary: PoW miners do not issue or sell securities https://t.co/5TcZesOQd9 pic.twitter.com/zS1kvn9rUJ
— BTC Laws (@Bitcoin_Laws) March 20, 2025
As the US shifts towards more defined digital currency regulations under President Donald Trump, the SEC’s position on mining brings essential assurance to the digital asset landscape.
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Trump’s SEC Chair Nominee Paul Atkins to Appear Before Committee Next Week
BREAKING: @realDonaldTrump’s nominee for @SECGov chair, Paul Atkins, is set to appear before the @BankingGOP next Thursday for his nomination hearing. Trump’s choice for @USOCC, Jonathan Gould, will likewise have his hearing. pic.twitter.com/Ne91g0js9x
— Eleanor Terrett (@EleanorTerrett) March 20, 2025
On 27 March 2025, SEC Chair nominee Paul Atkins, selected by Trump, will present to the Senate Banking Committee. As a former SEC commissioner, he will progress if the Senate votes in his favor.
Importantly, Atkins was an SEC commissioner from 2002 to 2008, with experience closely related to the crypto asset sector.
Additionally, his biography on Patomak Global Partners’ site emphasizes his involvement with the Token Alliance, a pro-crypto organization. He has been active in creating best practices for digital asset issuance and trading platforms since 2017.
If confirmed, Atkins’ role may signify a significant change in the SEC’s regulatory approach towards cryptocurrency.
Under the leadership of Joe Biden, outgoing SEC Chair Gary Gensler adopted a tough stance on the market, notably initiating enforcement measures against numerous prominent companies and initiatives.
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Major Points
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The US SEC has officially stated that proof-of-work crypto asset block rewards does not qualify as securities trading under US regulations.
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The SEC’s clarifying statement marks a substantial regulatory advancement for crypto miners.
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SEC nominee Paul Atkins and Trump’s favorite for the SEC Chair position will be appearing before the Senate Banking Committee for a hearing next week.
The post SEC Ruling: Proof-of-Work Crypto mining Not Subject To Securities Law appeared first on 99Bitcoins.
