Recently, the Securities and Exchange Commission (SEC) formally recognized that the Proof of Work (POW) mining mechanism was not classified as security, providing greater regulatory clarity for the technology. This is not only a positive signal for Bitcoin, the world’s leading cryptocurrency, but also a positive signal for POW-based Altcoin ETFs.
Latest moves from SEC
In the new Published statementThe Securities and Exchange Commission (SEC) clarifies its position on securities regulations regarding cryptocurrency mining under the proof-of-work mechanism.
Specifically, the SEC determined that neither solo mining nor pool mining constitutes securities transactions under the U.S. Securities Act. Mining crypto assets known as “cover crypto assets” does not meet the criteria classified as securities. Pow Mining is a decentralized network governance activity, with rewards depending on computing power and miner participation, rather than third-party entrepreneurs or management efforts.
Just in: 🇺🇸SEC releases a guide on mining proof 👀 pic.twitter.com/yskhresy4q
– Bitcoin Magazine (@bitcoinmagazine) March 20, 2025
The SEC stressed that the statement is intended to provide transparency and clarity to the cryptocurrency industry, especially in the context of increasing regulatory issues. It states that as long as these activities do not involve the issuance or sale of assets as an investment contract, these activities do not require SEC registration. However, whether there will be other factors in the SEC (such as fraud or different transaction structures) that will leave room for case-by-case assessment. Overall, this claim marks an important step to reduce legal uncertainty among Pow mining participants, while reaffirming the SEC’s principled approach to blockchain technology.
Learn more: SEC Statement Memecoins is not a securities
ETF Altcoin’s door opening
Since President Trump took office, he has been pushing for reforms to U.S. financial regulators, including the SEC and the CFTC, urging them to simplify crypto regulations. Soon, the SEC will appoint Pro-Crypto advocate Paul Atkins as its new chairman.
Currently, under the leadership of Acting Chairman Mark Uyeda, the SEC has established a dedicated crypto working group and reorganized its personnel. Specifically, the SEC recently filed lawsuits against several cryptocurrency companies including Opensea, Coinbase, Robinhood, Cumberland KRW, Consensys (Metamask), Kraken, Yuga Labs, BitClout, UnisWap and Ripple.
Source: Swyftx Learning
In addition, the latest SEC moves offer greater regulatory clarity to the latest actions of blockchain technology and Proof of Work (POW). This could pave the way for approval of Bitcoin and other POW-based Altcoin ETFs, such as Litecoin and Dogecoin, which in the near future gains the possibility that it has already gained a high probability of recognition this year.
