The cryptocurrency offense of the proof of work does not trigger federal securities laws, according to a press release from Thursday staff from the American Securities and Exchange (SEC) commission who told mining operators that they did not need to record their transactions with the regulator.
The Declaration, published by the Division of Finance of SEC Societies, said that cryptographic exploitation solo of evidence of work and proof of common cryptography do not respond to the definition of a securities transaction under the Howey test – the legal framework used to determine the transaction represents an investment contract – because they are “born with a reasonable expectation.
The declaration puts to rest all the persistent fears that the DSA application division can turn its gaze on minors of evidence of evidence of work. Although the agency, under the direction of former president Gary Gensler, reluctantly admitted that Bitcoin was a commodity rather than security, the continuation of the agency’s application against Green United, based at UTAH, caused PONZI concerns accused of defrauding customers in a cloud mine system, has aroused concerns among some in the industry that the agency light.
The SEC said that Thursday’s declaration was “part of an effort to give greater clarity on the application of federal laws on securities to cryptographic assets” – something that the industry has pushed for years. Under the new management of the acting president, Mark Uyeda, who created a crypto working group led by the friendly commissioner Hester Peirce, the agency quickly began to reverse the course of its crypto approach, prosecution and investigations launched under people and by repealing the accounting of the controversial staff.
Thursday’s staff press release comes shortly after the SEC published a similar statement in February by declaring that most of the same are outside the regulator’s jurisdiction.
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As part of its new leadership, the SEC reported a greater desire to work with the cryptographic industry to develop clearer and clearer regulations in the future. Friday, the agency will organize a round table on what makes a cryptocurrency a security – the first in a series of round discussions between the regulator and the participants in the industry.
