SEC Rules PoW Mining Doesn’t Violate Securities Laws – What It Means for Crypto

With regulators tightening their grip on crypto in recent years, many feared that PoW mining might get caught in the crossfire. But the SEC’s latest statement suggests otherwise.

SEC Confirms PoW Mining Isn’t a Security

On March 20, the SEC’s Division of Corporation Finance released a statement addressing "the mining of crypto assets that are intrinsically linked to the programmatic functioning of a public, permissionless network." The agency confirmed that decentralized PoW networks should not be classified as securities.

PoW Mining Doesn’t Meet the Howey Test

The SEC also ruled that PoW mining does not qualify as an investment contract under the Howey Test. This means that mining rewards are not considered securities. The decision follows the SEC’s recent stance that memecoins are not securities and comes after the agency wrapped up its five-year legal battle with Ripple.

Major Cryptos Classified as Commodities

Bitcoin (BTC) is the largest and most well-known PoW cryptocurrency, but others like Dogecoin (DOGE), Litecoin (LTC), and Monero (XMR) also use the same mining model. U.S. regulators, including the Commodity Futures Trading Commission (CFTC), classify Bitcoin as a commodity rather than a security. This same classification applies to Litecoin and Dogecoin.

These updates signal a shift toward clearer crypto regulations rather than an enforcement-heavy approach. However, the market reaction to the SEC’s statement was limited, as attention was focused on President Donald Trump’s speech at the Digital Asset Summit.

Under Trump’s leadership, digital asset markets, including PoW-based cryptocurrencies, are expected to grow.

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