SEC Ruling: Proof-of-Work Mining Not Subject To Securities Law

The US Securities and Exchange Commission (SEC) has officially ruled that proof-of-work (PoW) cryptocurrency mining does not constitute securities trading under US law.

Importantly, the SEC has clarified that Bitcoin, Litecoin, and Dogecoin are treated as commodities rather than securities.

According to a 21 March 2025 SEC statement, “It is the Division’s view that participants in Mining Activities do not need to register transactions with the Commission under the Securities Act or fall within one of the Securities Act’s exemptions from registration in connection with these Mining Activities.”

To simplify this, individual miners and mining pools participating in these networks are not subject to securities registration requirements.

SEC statement on Proof-of-Work mining:

– Miners generate rewards via work, not entrepreneurial effort
– Therefore, no ‘investment contract’
– Mining = outside scope of Howey test

TL;DR: PoW miners do not offer / sell securities https://t.co/5TcZesOQd9 pic.twitter.com/zS1kvn9rUJ

— Bitcoin Laws (@Bitcoin_Laws) March 20, 2025

As the US moves toward clearer cryptocurrency regulations under President Donald Trump, the SEC’s stance on mining offers much-needed certainty to the digital asset market.

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Trump’s Choice Of SEC Chair Nominee, Paul Atkins, To Face Panel Next Week

NEW: @realDonaldTrump’s pick for @SECGov chair Paul Atkins will face the @BankingGOP next Thursday for his nomination hearing. Trump’s pick for @USOCC, Jonathan Gould, will also have his hearing. pic.twitter.com/Ne91g0js9x

— Eleanor Terrett (@EleanorTerrett) March 20, 2025

On 27 March 2025, SEC Chair nominee Paul Atkins and Trump’s top choice for the position, will be facing the Senate Banking Committee to testify. Atkins, who is also a former commission of the SEC, will advance if the votes in the Senate are in his favour.

Notably, Atkins served as an SEC commissioner from 2002 to 2008. His background aligns closely with the cryptocurrency industry.

Furthermore, his biography on Patomak Global Partners’ website highlights his work with the Token Alliance, a crypto advocacy group. He has been involved in developing best practices for digital asset issuances and trading platforms since 2017.

If confirmed, Atkins’ appointment could represent a seismic shift in the SEC’s regulatory stance toward cryptocurrency.

Under the Joe Biden administration, outgoing SEC Chair Gary Gensler took a stringent approach to the crypto industry. Gensler is known for initiating enforcement actions against several high-profile companies and projects.

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