SEC Claims Bitcoin Mining Hosting Can Be a Security

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The US Securities and Exchange Commission has taken the position that third-party Bitcoin mining hosting agreements can qualify as securities. In a lawsuit against mining firm VBit and founder Danh Vo, the SEC alleged the company sold hosting contracts that functioned as investment contracts under the Howey test.

According to the agency, investors expected passive income and relied entirely on VBit’s operations, with no control over mining rigs — a structure the SEC says places the agreements squarely under securities law.