NEWSLETTER
The United States Stock Exchange and Securities Commission (SEC) has clarified its position on work proof mining (POW), ruling that bitcoin mining activities (btc) do not fall under the definition of values negotiation according to the United States Law.
This long -awaited statement provides essential clarity for cryptographic miners and the broader blockchain community, confirming that Mining Operations In public, networks without permission are not subject to securities regulations.
A new era for bitcoin and Dogecoin miners
The DEC decision is expected to have substantial implications for the main cryptocurrencies such as bitcoin and Dogecoin (Doge), which depend on the Pow consensus mechanism to validate transactions and add new blocks to their respective blockchains.
In statement The issued on Thursday, the SEC Corporation Finance Division addressed concerns regarding the “protocol mining”, concluding that these activities do not involve the “offer and sale of values” as defined by the Law of Securities of 1933.
“It is the opinion of the division that the 'mining activities' do not involve the offer and sale of values in the sense of section 2 (a) (1) of the Law of Securities and Section 3 (a) (10) of the Law of Exchange of Securities of 1934,” said the SEC.
This determination means that individual miners and mining pools Activities are not required to register transactions with the Commission under the Securities Law, nor need to fall within any exemption from the Registry.
Trump era regulations
The SEC failure is particularly important for miners who invest significant resources on computational power and energy costs to ensure blockchain networks.
The decision <a target="_blank" href="https://www.financemagnates.com/cryptocurrency/sec-clarifies-crypto-mining-rules-proof-of-work-doesnt-violate-securities-law/” target=”_blank” rel=”noopener nofollow”>allow Both solo miners and mining pools, where several miners combine their resources to increase their chances of gaining rewards, to continue their operations without the burden of regulatory uncertainty.
While the SEC did not specify private blockchains in its statement, the decision effectively applies to the main Pow networks such as bitcoin and Dogecoin.
The Basic Products Trade Commission (CFTC) has previously classified these assets as basic products instead of values, further solidifying the regulatory panorama for these cryptocurrencies.
This clarification occurs in the middle of a change in the regulatory environment under the president of the United States, Donald Trump, who has positioned himself as a pro-crypto leader.
The Trump administration has aimed to make the United States a global center for Block chain and digital assets, establishing the Council of Advisors on Digital Assets to develop friendly regulations with the industry.
The confirmation of the SEC that Pow Mining does not constitute the treatment of values can reinforce confidence between investors and miners equally, which indicates a movement towards clearer and favorable regulations in the cryptocurrency space.
At the time of writing this article, bitcoin quote $ 83,875, registering losses of up to 13% in the monthly period of time.
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