SEC Declares Proof-of-Work Crypto Mining Exempt from Securities Laws

The regulator clarified that mining activities fail the Howey Test, signaling a shift toward collaboration and clearer guidance under new leadership.

The SEC stated that proof-of-work mining does not involve the offer or sale of securities and is therefore not subject to federal securities laws.
Mining operations were determined to fail the Howey Test as they do not involve profits derived from the managerial or entrepreneurial efforts of others.
The SEC emphasized that proof-of-work mining is an administrative activity to secure networks and validate transactions, not a securities-related action.
This announcement is part of a broader effort by the SEC's new leadership to provide regulatory clarity and engage with the crypto industry.
A roundtable discussion on cryptocurrency classifications is planned as the SEC continues to refine its approach to crypto regulation.