The U.S. Securities and Exchange Commission (SEC) has issued a statement clarifying that proof-of-work (PoW) cryptocurrency mining activities do not constitute securities transactions. This guidance, from the SEC's Division of Corporation Finance, specifies that both solo mining and participation in mining pools do not meet the criteria of an investment contract under the Howey Test, as they do not involve a reasonable expectation of profits derived from the efforts of others. Despite this, Bitcoin mining stocks such as Marathon Digital, CleanSpark, and Bitdeer experienced declines of up to 4.5%, while Riot Platforms remained stable following the announcement. The SEC's announcement comes amidst a broader shift in its approach to cryptocurrency regulation, highlighted by the establishment of a new Crypto Task Force led by Commissioner Hester Peirce. The task force's first public meeting, held on March 21, 2025, focused on defining the security status of digital assets, signaling a move towards providing greater regulatory clarity in the crypto space. Additionally, the SEC has announced the 'SEC 2.0' initiative and established a Presidential Task Force on Cryptocurrency to further refine its regulatory approach. Under the new leadership of Acting Chair Mark Uyeda, the SEC has shown a willingness to engage with the cryptocurrency industry, evidenced by the withdrawal or pausing of several enforcement actions initiated by the previous administration. This shift aligns with President Donald Trump's plans to revamp cryptocurrency regulations, aiming to foster a more favorable environment for digital assets. The SEC also plans to shift its focus away from crypto enforcement towards more traditional enforcement areas such as insider trading, scams targeting elders, and fake financial reporting, according to acting director Sam Waldon. Despite the SEC's guidance, Commissioner Caroline Crenshaw expressed dissent, arguing that the statement's assumptions about mining activities and their relation to securities laws are flawed. She emphasized the need for case-by-case analyses to determine the applicability of securities laws to specific mining arrangements.