Proof-of-work cryptocurrency mining does not motivate federal security laws, according to a Thursday Staff statement From the US Securities and Exchange Commission (SEC) who told mining operators they did not need to register their regulator transactions.
The statement, published by the SEC’S Division of Corporation Finance, declared that both solo proof-of-work crypto mining and pooled proof-of-work crypto mining did not meet the meaning of a security transaction under the Howey Test-the legal framework used to determine if a transaction represents a contract in investment-because available from the entrepreneur or manager of the efforts of others. “
The statement puts to rest any long-term fear that the SEC’s Enforcement Division may turn around to think of proof-of-work crypto ministers. Although the agency, under the leadership of former Chair Gary Gensler, is surprisingly admitted that Bitcoin is a commodity rather than a security, the agency’s implementation suit against Utah based in Green United, an alleged ponzi scheme accused by customers who eventually crack into legitimate Crypto Miners.
The SEC said Thursday’s statement was “part of an effort to provide more clarity on the application of federal security laws to crypto assets” – something that the industry has been pushing for many years. Under the new leadership of the acting Mark Uyeda, who established a crypto task force led by commissioner friendly Hester Peirce, the agency quickly began reversing the course of its Crypto approach, lowering the suits and investigations that began under Gensler and repetition of the controversial controversial Staff Accounting Bulletin 121.
Thursday’s staff statement came shortly after the SEC released a similar staff statement in February declaring Most Memecoins outside regulator jurisdiction.
Read more: As Congress talks about this bill, regulators are already at work
Under its new leadership, the SEC has signed a greater willingness to work with the crypto industry to make better, clearer regulations progressing. On Friday, the agency will be hosting a discussion of cycling over what makes a cryptocurrency security -the first in a series of roundtable discussions between the regulator and industry participants.
