SEC Clarifies Crypto Mining Stance, Senate Hearing Set for Crypto-Friendly Chair Nominee

The U.S. Securities and Exchange Commission ( SEC ) has provided further clarity on its stance towards the cryptocurrency industry, issuing a staff statement declaring that proof-of-work (PoW) crypto mining does not trigger federal securities laws.

This announcement comes alongside the scheduling of a Senate hearing for Paul Atkins, President Trump's nominee to lead the SEC, who is known for his supportive views on cryptocurrencies.

The staff statement released Thursday by the SEC’s Division of Corporation Finance explicitly stated that both solo and pooled proof-of-work cryptocurrency mining operations fall outside its jurisdiction. The SEC explained that these activities do not meet the definition of a securities transaction under the Howey Test – the legal framework used to determine whether a transaction represents an investment contract – because they are “not undertaken with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.”

This clarification essentially quells concerns within the crypto mining community that the SEC might consider their activities as securities offerings requiring registration.

The SEC stated that Thursday’s announcement is “part of an effort to provide greater clarity on the application of the federal securities laws to crypto assets.” This aligns with the industry's long-standing calls for clearer regulatory guidelines. Under the leadership of Acting Chair Mark Uyeda, who recently established a Crypto Task Force spearheaded by crypto-friendly Commissioner Hester Peirce, the SEC has been signaling a shift in its approach to the digital asset space. This includes dropping lawsuits and investigations initiated under the previous administration and repealing the controversial Staff Accounting Bulletin 121. This latest statement on PoW mining follows a similar staff statement issued in February, which declared most memecoins to be outside the regulator’s jurisdiction .

In separate news, the Senate Committee on Banking, Housing, and Urban Affairs has scheduled a hearing for President Trump's nominee to lead the SEC, Paul Atkins, for Thursday, March 27, as reported by The Block.

Atkins, a long-time supporter of cryptocurrencies, was tapped by President Trump in early December to head the agency. Former Chair Gary Gensler stepped down on January 20 and Acting Chair Mark Uyeda has been leading the SEC since.

Atkins previously served as an SEC commissioner from 2002 to 2008 under former President George W. Bush. His nomination hearing had been delayed due to pending financial disclosure paperwork, reportedly complex due to his marriage into a billionaire family.