Bitcoin Mining Activities Don’t Breach Federal Securities Laws: SEC Clarifies Participants Need Not Register Transactions
The Securities and Exchange Commission clarified its position on cryptocurrency mining activities Thursday, asserting that they do not fall under federal securities laws.
What Happened: The SEC’s Division of Corporation Finance stated that proof-of-work mining activities, which involve using computational resources to validate blockchain transactions and getting rewarded, do not involve the offer and sale of securities. As a result, participants in these activities are not obligated to register transactions with the Commission under the Securities Act
The SEC’s perspective applied to two categories: self (or solo) mining on a PoW network, and mining pools, which combine computational resources to increase their chances of validating transactions.
Notably, Bitcoin (CRYPTO: BTC) is the …
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