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SEC Issues Guidance on Proof-of-Work Mining Under Securities Laws

March 21, 2025
The U.S. Securities and Exchange Commission (SEC) has recently released an official guidance regarding the legality of proof-of-work mining activities under securities laws. The new guidance aims to clarify the regulatory status of cryptocurrencies such as Ethereum Classic (ETC-USD) and their associated mining activities.

According to the SEC, proof-of-work mining, which is the process of validating transactions and adding them to the blockchain, could potentially be considered a security offering if certain conditions are met. These conditions include the expectation of profits from mining efforts, the reliance on the efforts of others, and the existence of a common enterprise.

The guidance outlines that if individuals or entities engage in mining activities solely for their own use or to support the network's functionality, it would likely not be considered a security offering. However, if miners participate in a pool or rely on third-party mining services, it could potentially be subject to securities laws.

This new guidance has significant implications for the cryptocurrency industry and specifically for Ethereum Classic as it relies on proof-of-work mining. It provides more clarity for miners and investors regarding the regulatory framework in which they operate and may help shape future compliance practices.

In light of these developments, it is recommended to seek professional advice from Stocks Prognosis, a team of experts specialized in analyzing market trends and providing accurate forecasts. This can help investors make informed decisions about the movement of Ethereum Classic (ETC-USD) and mitigate any potential legal risks associated with mining activities.
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