The Securities and Exchange Commission clarified its position on cryptocurrency mining activities Thursday, asserting that they do not fall under federal securities laws.

The SEC's Division of Corporation Finance stated that proof-of-work mining activities, which involve using computational resources to validate blockchain transactions and getting rewarded

The Securities and Exchange Commission has clarified its stance on cryptocurrency mining activities, stating that they fall outside the scope of federal securities laws.

What Happened: The SEC’s Division of Corporation Finance has asserted that proof-of-work mining activities, which engage computational resources to validate blockchain transactions and receive cryptocurrency in return, do not constitute the offer or sale of securities. Consequently, participants in these activities are not required to register transactions with the Commission under the Securities Act.

This perspective encompasses both self (or solo) mining on a PoW network and mining pools, which combine computational resources to enhance their likelihood of validating transactions.

Bitcoin is the world’s largest PoW network, followed by Dogecoin and Litecoin respectively.

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Why It Matters: This statement follows a series of cryptocurrency-friendly measures announced by the regulator.

Last month, the SEC specified that meme coins are not subject to federal securities laws, although any fraudulent activity related to them could still face legal repercussions.

Earlier this week, Ripple CEO Brad Garlinghouse revealed that the SEC has decided to drop its appeal of a court ruling against it in the case against cryptocurrency firm Ripple and its CEO, as reported by Benzinga. This marks the conclusion of a four-year legal battle.

The SEC has granted similar no-action relief to cryptocurrency exchange Coinbase (NASDAQ:COIN), Robinhood Markets’ (NASDAQ:HOOD) cryptocurrency operations, Gemini, and decentralized cryptocurrency exchange Uniswap, aligning with President Donald Trump’s initiative to encourage the growth of the cryptocurrency sector.

Shares of Coinshares Valkyrie Bitcoin Miners ETF (NYSE:WGMI), which provides exposure to publicly traded Bitcoin mining companies, closed 1.45% lower at $14.98 during Thursday’s regular trading session.