SEC may approve multiple Altcoin ETFs in Q2 2025

Today, the U.S. Securities and Exchange Commission (SEC) announced that cryptocurrencies using the proof-of-work consensus mechanism (Proof-of-Work – PoW) are not subject to securities laws. With this regulatory clarity and the commission's recent moves, analysts predict that the SEC will approve multiple altcoin ETF funds simultaneously by the end of Q2 2025.

As the SEC increasingly leans towards supporting cryptocurrencies, Caroline Crenshaw – a commissioner with an opposing stance on cryptocurrencies – has continued to voice her objections. She argues that this latest decision by the SEC has many legal loopholes, but it is unlikely that these opposing views will hinder the strong push towards supporting cryptocurrencies.

SEC is preparing to approve more ETFs

According to the press release, the SEC determined that cryptocurrency assets using the PoW mechanism are not considered securities under U.S. law. Like Bitcoin, the entire group of assets is classified as commodities. This decision could have far-reaching implications, paving the way for altcoin ETFs.

"According to the SEC's perspective, mining activities are not related to the offering and selling of securities. Participants in mining do not need to register transactions with the commission under the Securities Act or meet exceptions from this regulation," the SEC's statement emphasized.

This legal clarity will enhance the likelihood of approval for ETFs of certain PoW assets. For example, Litecoin – a coin in this category – has long had a high prospect of being approved. The new ruling could encourage asset managers to consider launching ETFs for other PoW coins such as Monero or Kaspa.

This trend is not limited to PoW assets. The SEC has taken systematic steps by declaring many types of cryptocurrencies as commodities. In February, the SEC asserted that meme coins are not securities, paving the way for the potential launch of Dogecoin ETFs.

SEC wants Paul Atkins to take office with a fresh start

The declaration that cryptocurrency assets are not securities seems to be a strategic move to set the stage for future ETF applications. Even the current delays could serve as a foundation for long-term progress.

For example, last week, the SEC delayed its review of ETF applications for Solana and XRP. However, the Commodity Futures Trading Commission (CFTC) has approved futures trading for both of these assets, increasing the chances of ETF approval in the future.

In addition, the SEC has also withdrawn its landmark lawsuit against Ripple, which was based on the argument that XRP is a security. These moves gradually remove legal barriers, paving the way for altcoin funds to enter the traditional financial market.

Next week, the U.S. Senate is scheduled to hold a confirmation hearing for Paul Atkins – who was nominated by former President Donald Trump for the position of SEC Chairman. If Atkins takes office before the next ETF filing deadline, he is likely to approve a series of altcoin ETFs, especially as commissioners Mark Uyeda and Hester Peirce are clarifying the boundaries between securities and commodities.

Journalist Eleanor Terrett wrote: "Donald Trump's nominee for SEC Chairman, Paul Atkins, will testify before the Senate Banking Committee next Thursday. Jonathan Gould, a candidate for the position of Comptroller of the Currency (OCC), will also participate in this hearing."

Crenshaw continues to speak out against

Although the trends and actions of the SEC show clear support for altcoin ETFs, not all committee members agree. Caroline Crenshaw continues to criticize this decision.

She emphasized: "In the notes, the statement shows an important limitation: it is necessary to conduct an analysis according to the Howey standard to determine whether a specific mining agreement constitutes an investment contract or not. For the benefit of investors and the transparency of the market, I hope the public does not misunderstand this statement."

Crenshaw argues that the SEC's perspective has many serious gaps and does not ensure that PoW tokens are completely exempt from securities laws.

She also revealed that this is the tenth time in the past nine weeks that the SEC has issued similar "non-binding interpretations." However, she did not directly accuse her colleagues of having biases against the cryptocurrency industry.

However, Crenshaw's term at the SEC is about to end. If no one actively challenges these loopholes, they will have no legal value.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

• Canary Capital files for listing the PENGU ETF and Pudgy Penguins NFT
• Solana futures ETF boosts institutional adoption, although the inflow of funds is limited.

Mr. Teacher

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width: 728px; height: 90px; } }