The SEC Clears Up The Legal Uncertainty Surrounding PoW Crypto Mining

The SEC, that watchdog of the crypto markets that sometimes gives us cold sweats. But this time, it has decided to put away its whistle and offer us a breath of fresh air. On March 20, 2025, in a (almost) historic statement, the Securities and Exchange Commission clarified a point that many miners were waiting for like the thaw of spring: NO, Proof-of-Work (PoW) mining does not constitute a securities offering!

PoW is not smoke and mirrors

Let’s quickly revisit what PoW is: it’s a mechanism that makes our computers sweat to secure networks like Bitcoin or Dogecoin, which seems undervalued. We solve equations, consume a little (a lot) of electricity, and in return, we earn cryptos. But until now, a gray area loomed: does mining equate to issuing a security? Spoiler alert: the SEC says no. Phew.

This clarification is a bit like the SEC just lifted a misplaced “danger” sign. The regulator specifies that when miners, solo or in a pool, validate blocks and automatically receive rewards, they are not within the framework of the Securities Act of 1933. In simple terms: as long as there’s no expectation of profit based on the efforts of others, everything is fine.

The crypto industry breathes… to breathe better

Let me tell you that the ecosystem welcomed this statement with applause. This position protects PoW actors from a paralyzing legal gray area and shines a spotlight on a practice sometimes wrongly accused of all ills. Even the somewhat dusty cryptos from digging up the digital ground are regaining their colors.

But let’s not cry victory too soon: the SEC did not say “total laissez-faire.” Crypto platforms, ICOs, and some slightly border DAOs remain in the crosshairs. But for PoW miners, the sky is clearing. We move forward, perhaps stumbling, but with fewer stones in our shoes.

The SEC has been doing surprising things lately, and could even abandon a major regulation on crypto platforms. This clarification on PoWs brings hope and offers more perspectives. Miners can therefore pick up their digital shovel with a smile. Moral of the story? Mining is not a crime. It’s just a job… that gets a bit hot.