I have just learned the SEC has stated it views cloud mining as a security, and companies in US must register with the SEC. This will mean it will take longer for my company to actually start operations and award contracts. I am not allowed to offer the contracts until the SEC filing is complete and accepted. Thus this is just crowd funding for a start up company. Any return based on mining, are not available or offered until the SEC filling is complete.
From BATASnatin Law Library:
"It (an investment contract) is a 'contract, transaction or scheme (collectively ‘contract’) whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.' (R.A. 8799)
The HOWEY TEST is the test established to determine whether a transaction falls within the scope of an investment contract. It requires that a person:
1. Makes an investment of money;
2. In a common enterprise;
3. With the expectation of profits;
4. To be derived primarily from the efforts of others."
https://www.batasnatin.com/law-library/mercantile-law/corporation-law/2261-investment-contract.html
Additional info: https://thompsonburton.com/mlmattorney/2018/01/22/cloud-mining-sale-unregistered-securities/