SEC Clarifies Proof-of-Work Mining Does Not Violate Securities Laws

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The US Securities and Exchange Commission (SEC) clarified on Thursday that Proof-of-Work (PoW) cryptocurrency mining activities, involving protocols like Bitcoin, Litecoin, and Bitcoin Cash, will not be subject to existing securities laws.

This decision marks a significant regulatory milestone, providing greater certainty for mining participants and boosting optimism in the broader cryptocurrency industry.

As part of its efforts to refine cryptocurrency regulations, the SEC’s Division of Corporation Finance confirmed that Proof-of-Work mining falls outside the scope of existing securities obligations. The statement specifies that this exemption applies only to PoW mining operations on public blockchain networks.