The SEC is starting its attack on Bitcoin mining: The SEC just filed a case in the federal court alleging that selling crypto mining equipment and offering hosting services for that equipment is an unregistered securities offering

James "MetaLawMan" Murphy (MetaLawMan on Twitter) is a lawyer that provides research, analysis, and commentary on legal and business issues arising in the world of digital assets and the metaverse.

James Murphy just revealed that the SEC filed a case in the federal court in Utah alleging that "selling crypto mining equipment and offering hosting services for the equipment constitutes an investement contract under Howey". James previously worked with some of the lawyers that represent some of the defendants in this case.

Some of these mining machines are Bitcoin Antminers. Many companies in the US are selling mining equipment and offering hosting services. These companies have been doing so for years without any issue. The SEC has never given any guidance suggesting that selling equipment for mining would be an unregistered securities offering.

We have to wait for the official filing, but it looks like the SEC is escalating the fight against crypto. In James words: "The overreach is accelerating. Congress needs to act."

I agree. This is insane? Anything is a security according to the SEC. Is this not going to hurt the United States' role in crypto and push people to go elsewhere? I better warn my neighbour's 6 year old that is selling orange juice on the street. Gary is going to come for her next.

EDIT: https://www.bloomberglaw.com/public/desktop/document/SecuritiesandExchangeCommissionvGreenUnitedLLCetalDocketNo223cv00 Link to the complaint

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