SEC Shakes Up Crypto: How New SEC Proof-of-Work Guidelines Could Crash Crypto Mining?

The US Securities and Exchange Commission has issued new guidelines on Proof-of-Work mining. This addresses its implications under securities regulations. This move aims to clarify the legal standing of Bitcoin mining and other Proof-of-Work operations. Also, their potential classification under existing financial laws. The guidance focuses on how mining rewards and operations could be scrutinized under securities frameworks. This is raising concerns among industry participants. Investors must adjust to these regulatory developments as SEC guidance continues to change. As regulatory uncertainty hovers over the crypto field, the update may also have an effect on the larger market, impacting patterns in Bitcoin price predictions.

SEC Latest Guidance on Proof-of-Work

The SEC’s latest statement highlights how PoW mining efforts may be subject to securities regulations, a topic of long-standing dispute in the crypto industry. According to the new guidelines, mining firms accepting investment funds or operating in structured financial arrangements could be subject to securities laws. The SEC aims to prevent potential risks related to fraudulent fundraising and misrepresentation of mining profitability.

The agency concurs that Bitcoin mining is a decentralized process. It warns that certain financial models related to mining operations could raise red flags. This includes cloud mining contracts, revenue-sharing models, and staking-based investment schemes that promise fixed returns. The SEC guidance emphasizes investor protection, stating that any structured investment with expectations of profit linked to mining operations might be treated as a security.

This development has led to concerns within the mining industry. While some companies considering legal adaptations or operational changes to avoid regulatory scrutiny. Meanwhile, market analysts speculate on how these regulations might influence Bitcoin’s market behavior, especially regarding Bitcoin price prediction as the industry awaits further clarification from the SEC.

Bitcoin Drops Below $84,760.89 

The trading day of March 20th began with an overbought condition, as Bitcoin encountered resistance at $87,453.89 at midnight. A death cross on the MACD line at 00:20 UTC triggered a downward move, leading to price fluctuations throughout the day. At 9:20 UTC, another death cross intensified the selling pressure, pushing Bitcoin lower. An oversold situation at 10:15 UTC allowed the price to find support at $84,760.89, leading to a temporary rebound. However, continued volatility saw Bitcoin break below this level around 15:55 UTC, with new support emerging at $83,655.44 after an oversold RSI signal at 16:30 UTC.

Chart 1, Analyzed by ShwetaCW, published on TradingView, March 21, 2025

The latter half of the trading session saw a golden cross at 17:05 UTC, sparking an upward trend. At 23:35 UTC, another golden cross attempted to sustain this momentum. On March 21st, Bitcoin’s upward trend continued, but resistance at $84,760.89 proved strong. The RSI indicator reached 70.47 at 1:55 UTC, signaling overbought conditions. A failed breakout attempt brings the price back to the previous trading range. According to Bitcoin price prediction, a continued downward move could break the $83,655.44 support. While a reversal may push the price to $84,760.89 resistance, potentially continuing an uptrend.

BTC’s Road Ahead

The recent SEC guidance on Bitcoin mining has sparked discussions about its potential impact on the market sentiment. With regulatory scrutiny increasing, miners may face new challenges that could affect BTC’s supply dynamics. From a technical perspective it’s price remains in a critical range. A break below $83,655.44 could signal further downside, while a reversal above $84,760.89 may lead to a bullish recovery. According to Bitcoin price prediction, market volatility is expected to continue as traders react to regulatory developments and key technical levels.