PANews on March 21 reported that according to The Block, the U.S. Securities and Exchange Commission (SEC) has clarified its stance on certain proof-of-work (PoW) mining activities, which is the latest move by the agency after shifting to a more crypto-friendly approach. In a statement issued by the SEC's Division of Corporation Finance on Thursday, SEC staff stated that proof-of-work mining does not involve the issuance and sale of securities; therefore, parties participating in mining activities are not required to register transactions with the Commission under the Securities Act, nor do they fall under the registration exemptions related to these mining activities under the Securities Act.

The SEC's conclusion on Thursday relied on the "Howey test" - a 1946 U.S. Supreme Court case that the SEC frequently cites to determine whether an asset meets the definition of an investment contract and therefore qualifies as a security. The test relies on four questions: whether there is an investment of money, whether there is a common enterprise, whether there is an expectation of profits, and whether the profits come from the efforts of others.