Overview

• 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.