Good News for These Altcoins from the SEC: We Do Not Accept Them as Securities Transactions! - Coin Bulletin

The U.S. Securities and Exchange Commission (SEC) announced that Proof-of-Work (PoW) mining activities are not considered a securities transaction.

SEC stated that mining activities do not carry an expectation of profit based on the entrepreneurial or managerial efforts of others. This statement indicated that mining conducted on PoW networks only involves the contribution of computational resources and does not meet the definition of an investment contract.

The SEC stated in a statement published last week that it does not consider solo mining in the PoW mechanism and activities conducted in mining pools as securities transactions under the Howey Test. This test is a legal framework used to determine whether a transaction qualifies as an investment contract, and the SEC expressed that such mining activities are not conducted with the expectation of profits based on the managerial efforts of others.

The SEC's statement is seen as an important step in the cryptocurrency mining industry. Bitcoin (BTC) primarily, along with Dogecoin (DOGE), Litecoin (LTC) reinforces interest in PoW-based cryptocurrencies.

Mining activities appear to provide a clear legal assurance for investors while also allowing other PoW cryptocurrencies such as Bitcoin Cash (BCH), Monero (XMR), Zcash (ZEC) to continue to grow without facing regulatory hurdles.

Impact of PoW mining and crypto pools

The SEC's statement indicates that mining pools will not pose legal issues. PoW mining allows rewards to be earned through computational processes that secure the networks. It was emphasized that this mining activity is sustainable without legal obstacles particularly in PoW cryptocurrencies such as Bitcoin SV (BSV), Kaspa (KAS).

The SEC's recent approach has provided relief to many investors in the sector. This development also seems to allow cryptocurrencies such as Conflux (CFX) and eCash (XEC) to attract more investment.

In the cryptocurrency mining industry, with this step by the SEC, the development processes of lesser-known but promising cryptocurrencies, especially Dash (DASH) and Verus (VRSC), are expected to accelerate.