Key Takeaways
- The SEC confirms Bitcoin mining doesn’t contain securities.
- Solo miners and mining swimming pools are exempt from registration guidelines.
- Mining rewards are seen as compensation, not funding earnings.
The U.S. Securities and Change Fee (SEC) has clarified its stance on proof-of-work (PoW) mining, stating that mining actions don’t represent the provide and sale of securities below the Securities Act of 1933 and the Change Act of 1934.
Solo mining & mining swimming pools
The SEC’s assertion covers solo mining and mining swimming pools, affirming that contributors should not topic to securities registration necessities.
The company decided that Bitcoin miners earn rewards by their computational contributions somewhat than by the efforts of third events.
Rewards as compensation
The assertion reads:
A miner’s expectation to obtain Rewards will not be derived from any third occasion’s managerial or entrepreneurial efforts.
As an alternative, rewards are seen as compensation for companies rendered to the community.
Mining swimming pools and the Howey Check
The SEC additionally discovered that mining swimming pools don’t meet the standards for an funding contract below the Howey Check.
Whereas mining swimming pools mix assets, particular person miners nonetheless carry out the computational work, that means earnings should not depending on the managerial efforts of others.
This assertion reinforces the authorized standing of Bitcoin mining within the U.S. and supplies readability for miners and pool operators relating to regulatory compliance.