The Securities Division of North Carolina has ordered Genesis Mining to Cease and Desist from offering mining contracts.
The Securities Division says such mining contracts are investment contracts and therefore securities. Genesis Mining needs to register with the SEC, they say.
They say mining contracts meet the Howey test as investments are pooled in a common enterprise with an expectation of profits primarily dependent on the efforts of Genesis Mining.
Genesis Mining is a crypto pool that allows anyone to buy hash-power, with the company then managing the miners and every aspect of it.
Dependent on difficulty increases, purchases can be risky as equipment can quickly go out of date, making projections and estimations hard to realistically calculate.
The Hong Kong based business, however, has attracted demand and has been operating for years without any problems as far as we are aware.
But the Securities Division is now seemingly extending the Securities Act 1933 to cover such contracts as investments in a common enterprise, rather than an individual purchase or renting of hashpower.
The primary reason seems to be that the hardware creates bitcoin, and therefore potentially profit, pretty much by itself. With Genesis Mining so managing storage, cooling and so on.
However, it is unclear how this is a common enterprise, rather than a selling/renting of hardware. They point to Genesis Mining pooling “investments” and re-investing profits, but that’s an activity undertaken by any business that sells goods, or provides management services such as letting agents.
By such extension of interpretation, you can argue buying an art piece which is managed and stored in an art house amounts to the art house selling securities.
With a laxer interpretation potentially covering far more than simply shares in a company in what appears to be a considerable over-reach.
But Genesis Mining does act as a custodian of the hardware, and there have been cloud mining providers who have simply run away, so the Securities Division is now seemingly exerting oversight rights.
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They are not and all governments are here for now is to find ways to steal your money under the disguise of common good. The only common good would be if governments would disappear and their employees be sent to mental and spiritual rehabilitation camps. These fucking assholes are nothing but destructive towards the evolution of mankind. We as a society need to purge them
Americans grow some balls finally and take back your power and especially your lost minds. Your government is the seat of evil and enemy of humanity.
I would allways share my positive experience with Genesis Mining. I have been mining in GM for quite some time now and all I can say is that I’m very satisfied with how things are going, my paymants and whole mining process in GM. For all wondering about their transparency an are they legit it is enough to google them and they will see themselves. I have allways felt like my investment payed off, even now in mining market crisis. So I hope everyone mining will be satisfied as I am mining in GM.
I am acctually enjoying mining in Genesis, don’t feel scamed at all. Never have I felt so. I have a few contracts there and they are all bringing me money every day. You definitely need some time to start earing money but it is worth it once you do. My contrascts are up to date now, I upgraded them to Radiant when I was offered and so far it seems to be a gret decision. Still my paymants are on time and I will be definitelly mining in GM in the future.