Summary
- The U.S. Securities and Exchange Commission (SEC) announced the definition of Proof of Work (PoW) mining.
- The SEC stated that this is part of efforts to clarify the scope to which federal securities laws can apply to virtual assets.
- It described crypto assets as 'protected crypto assets' and mining in Proof of Work networks as 'protocol mining'.
On the 20th (local time), the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance released a definition of Proof of Work (PoW) mining on its official website.
The SEC explained that this announcement is part of efforts to more clearly define the scope to which federal securities laws can apply to virtual assets (cryptocurrencies).
The SEC stated, "The 'mining' activity of a Proof of Work network is based on programming of a public network that operates without the permission of a specific entity," and added, "'Mining' is necessary to participate in the consensus mechanism of the network or to maintain its technical operation and security."
Additionally, "The SEC refers to these crypto assets as 'protected crypto assets' and the mining in Proof of Work networks as 'protocol mining,'" it added.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
