The article discusses the relationship between bitcoin miners and the Securities and Exchange Commission (SEC) and how miners can avoid SEC scrutiny. It highlights the history of SEC actions against bitcoin miners dating back to 2015, particularly cloud miners who offered colocation and management services. The article explains how cloud mining contracts that offer specific computing power over time can be viewed as securities and invites fraud. The flaws and risks associated with cloud mining are discussed, including the selling of more computing power than machines can actually generate. The article also mentions that not all remote mining services are considered securities, as some offer features that reduce risk and provide direct access to machines. It compares the practices of Kraken and Coinbase in their staking services to illustrate the different levels of intermediary management. The article concludes by acknowledging that bitcoin miners can still be subject to SEC risk if they engage in arrangements that are clearly securities contracts.

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