Editor's PiCK
US SEC Department: Bitcoin and Other Mining Networks Are Not Subject to Securities Regulation
Summary
- The US SEC has stated that blockchain networks using the Proof of Work method, like Bitcoin, are not subject to securities regulation.
- The SEC interpreted that mining activities on open blockchains do not constitute the issuance and sale of securities.
- It is predicted that several altcoin ETFs could be approved due to changes in SEC regulations.
The Corporate Finance Department of the United States Securities and Exchange Commission (SEC) has stated that blockchain networks using the Proof of Work (PoW) method are not subject to securities regulation.
According to Atlas21, a media outlet specializing in virtual assets (cryptocurrency), the SEC announced in a statement on the 20th (local time) that "cryptocurrency mining activities inherently linked to the programmatic operation of open and permissionless networks do not constitute 'issuance and sale of securities' under securities law under certain conditions." This interpretation applies to both individual miners and mining pools.
The media explained, "The SEC document does not explicitly mention specific blockchains that fall under this category, but the principle can be applied to open blockchains where mining is used as a consensus mechanism." It added, "Virtual assets such as Bitcoin, Dogecoin, Litecoin, and Monero could also be subject to this application."
On the same day, the virtual asset media CoinPaprika stated, "This announcement follows the trend of the SEC easing cryptocurrency regulations," and predicted, "Due to regulatory changes, several (PoW-based) altcoin ETFs could be approved by the end of the second quarter this year."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
