{"id":20089,"date":"2025-03-21T10:04:46","date_gmt":"2025-03-21T10:04:46","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2025\/03\/21\/sec-boosts-bitcoin-and-etf-altcoins-by-pow-compliance\/"},"modified":"2025-03-21T10:04:46","modified_gmt":"2025-03-21T10:04:46","slug":"sec-boosts-bitcoin-and-etf-altcoins-by-pow-compliance","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2025\/03\/21\/sec-boosts-bitcoin-and-etf-altcoins-by-pow-compliance\/","title":{"rendered":"SEC Boosts Bitcoin and ETF Altcoins by PoW Compliance"},"content":{"rendered":"

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Recently, the SEC officially recognized that the Proof-of-Work (PoW) mining mechanism is not classified as a security, providing greater regulatory clarity for this technology. This is a positive signal not only for Bitcoin \u2013 the world\u2019s leading cryptocurrency \u2013 but also for PoW-based altcoin ETFs.<\/span><\/p>\n

Newest move from SEC<\/strong><\/h2>\n

In a newly <\/span>released statement<\/span><\/a>, the U.S. Securities and Exchange Commission (SEC) clarified its stance on securities regulations concerning cryptocurrency mining under the Proof-of-Work mechanism.\u00a0<\/span><\/p>\n

Specifically, the SEC determines that both solo mining and pool mining do not constitute securities transactions under U.S. securities laws. The mined crypto assets, termed \u201cCovered Crypto Assets,\u201d do not meet the criteria to be classified as securities. PoW mining is a decentralized network governance activity, where rewards depend on computational power and miners\u2019 participation, not on the entrepreneurial or managerial efforts of third parties.<\/span><\/p>\n

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JUST IN: \ud83c\uddfa\ud83c\uddf8 SEC publishes guidance on proof of work mining \ud83d\udc40 pic.twitter.com\/YSKhrESy4Q<\/a><\/p>\n

\u2014 Bitcoin Magazine (@BitcoinMagazine) March 20, 2025<\/a><\/p>\n<\/blockquote>\n

The SEC emphasizes that this statement aims to provide transparency and clarity to the cryptocurrency industry, particularly amid growing regulatory questions. It notes that these activities do not require SEC registration under current securities laws, as long as they do not involve issuing or selling assets as investment contracts. However, the SEC leaves room for case-by-case evaluation if additional factors, such as fraud or differing transaction structures, arise. Overall, this statement marks a significant step in reducing legal uncertainty for PoW mining participants, while reaffirming the SEC\u2019s principled approach to blockchain technology.<\/span><\/p>\n

Learn more: SEC Declares Memecoins Are Not Securities<\/a><\/p>\n

Open door for ETF altcoin\u00a0<\/strong><\/h2>\n

Since President Trump took office, he has pushed for reforms in U.S. financial regulators, including the SEC and CFTC, urging them to ease crypto regulations. Soon, the SEC is set to appoint Paul Atkins, a pro-crypto advocate, as its new chairman.<\/span><\/p>\n

Currently, under Acting Chairman Mark Uyeda, the SEC has established a dedicated crypto task force and restructured its personnel. Specifically, the SEC recently dropped lawsuits against several crypto firms, including OpenSea, Coinbase, Robinhood, Cumberland KRW, Consensys (MetaMask), Kraken, Yuga Labs, BitClout, Uniswap, and Ripple.<\/span><\/p>\n