This has brought much-needed respite to crypto miners and the larger blockchain industry who have been awaiting a definitive stance on the subject. The SEC’s clarification indicates that mining operations conducted on public, permissionless networks are not subject to securities laws.

This has far-reaching implications for PoW cryptocurrency networks such as Bitcoin and Dogecoin. PoW is a consensus mechanism utilized in the cryptocurrency mining process, responsible for validating transactions and adding new blocks to the chain.

In a recent statement, the SEC’s Division of Corporation Finance addressed the concerns associated with “Protocol Mining.” They concluded that such mining does not constitute an “offer and sale of securities” as per the Securities Act of 1933.

Therefore, independent miners and mining groups participating in these networks are not obligated to meet securities registration requirements. Although specific blockchains were not named in the statement, it’s clear that the ruling applies to large PoW networks such as Bitcoin and Dogecoin.

Earlier, the Commodity Futures Trading Commission (CFTC) had classified Bitcoin and other PoW assets, including Litecoin and Dogecoin, as commodities, not securities. The SEC’s position reaffirms this status, allowing miners to proceed with their operations without regulatory ambiguity.

The ruling is applicable to both individual miners and mining pools, confirming that mining activities are beyond the purview of securities laws. This clarity is especially significant for miners who invest substantial resources in computational power and energy to secure blockchain networks.

Mining pools, where numerous miners combine their computational resources to enhance their chances of earning rewards, are also included in this exemption. The operators of these pools can organize mining efforts and distribute rewards without infringing securities laws, provided they operate within the SEC’s framework.

The SEC’s recent clarification comes amidst ongoing regulatory changes under the Trump administration, which has shown a pro-crypto stance. With the SEC’s assurance that PoW mining is not securities dealing, Bitcoin and other PoW-based cryptocurrencies may gain more confidence from investors and miners. As the US continues to provide clearer crypto regulations, the SEC’s latest stance on mining offers much-needed certainty in the digital asset market.

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While the blocks are also mined on Decred. Some portion of the rewards are also given to the POW miners. Though, the stake voters get some other cut. The third or the small portion goes to the Project Treasury fund. It is mainly used for the development of such protocol.

Altcoin working for Decred

Decred is even working on the ways for implementing the privacy in simple ways as compared to other coins. These are Zcash (ZEC) or Monero (XMR) by using the codeset known as CoinShuffle++.

Lately, the Decred community has also voted on the proposal for reducing POW mining rewards. These were reduced from 60% down and came to 10%. For defending against the “malicious miners” with the history of the price management. Apart from this, the stake voters of Altcoin will also have the rewards raised from about 30% to 80% under such update.

There has been the hidden risk that we found with POW Decred is that the malicious mining can cartel. Rather it is about selling at the market prices. It also accumulates a huge inventory of the Altcoin. This may be wielded as the weapon against the positive action of price.

Though the risk has also been exposed with Decred. The similar kind of strategy has been applied for each notable coins of majority-pow. People that usually care about pow with their fairness must be aware of the hidden risk.

POS and POW have notable strengths for Altcoin. However, we have found typically-overlooked set of risk of the mining cartel that is suppressing markets with their inventory is the huge downside to POW.

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