Crypto leaders, including Digital Chamber President Cody Carbone, praised the SEC's move as providing legal certainty and paving the way for growth in the U.S. mining industry.

This ruling is significant for major cryptocurrencies like Bitcoin and Dogecoin, which utilize the PoW consensus mechanism and are viewed by US regulators as commodities rather than securities.

The SEC has recently adopted a more lenient stance, rescinding controversial crypto accounting guidance and dropping enforcement actions against major players in the crypto market.

The US Securities and Exchange Commission (SEC) has confirmed that proof-of-work (PoW) crypto mining is exempt from securities law, clarifying that such activities are not considered offering or selling securities.

This decision offers relief for U.S. miners, affirming the legitimacy of PoW mining amidst increased regulatory scrutiny of the cryptocurrency industry.

Commissioner Caroline Crenshaw criticized the SEC's statement, warning that it could lead to misunderstandings about compliance with the Howey test.

This clarification aligns with a pro-crypto stance under the Trump administration, which is committed to enhancing the digital asset market and establishing the US as a leader in blockchain and crypto.

The potential passing of crypto-specific legislation in Congress by August 2025 adds to the optimism in the crypto market, with a cryptocurrency market structure bill expected to be introduced by summer 2025.

The SEC previously affirmed that Bitcoin and Ethereum are not classified as securities, a position supported by former SEC Chair Gary Gensler.

Despite the clarity for miners, the SEC continues to monitor token issuers, exchanges, and staking programs, indicating that regulatory actions against other aspects of the crypto market will persist.

The clarification regarding PoW mining is significant for understanding cryptocurrency mining processes and ensuring network security.

PoW is a consensus mechanism used in cryptocurrencies like Bitcoin, requiring miners to solve cryptographic puzzles to earn rewards, which are classified as administrative actions to secure the network.