The U.S. Securities and Exchange Commission (SEC) recently declared that proof-of-work (PoW) crypto assets like Bitcoin are considered commodities , not securities. This regulatory shift could open the door for multiple altcoin ETFs to be approved together by the end of Q2 2025. This announcement follows the SEC’s growing pattern of easing restrictions around crypto regulation. By separating PoW assets from traditional securities laws, the Commission may have laid a clear path for the approval of ETFs based on coins such as Litecoin, Monero, and Kaspa . The decision states that mining activities do not involve offering or selling securities. It also says that participants in these activities don’t need to register with the Commission. This update aligns with earlier decisions where the SEC classified certain meme coins as non-securities, clearing a possible route for ETFs tied to those assets as well. While this seems like good news for the industry, not all voices within the SEC are in agreement. Commissioner Caroline Crenshaw spoke out against the ruling, warning that it contains loopholes and doesn't offer enough protection. Still, her comments are unlikely to slow down the SEC’s current momentum. The Commission also recently delayed decisions on ETF applications for tokens like Solana and XRP. However, the Commodity Futures Trading Commission (CFTC) has already approved futures trading for these tokens, boosting their ETF chances. The SEC also dropped its lawsuit against Ripple, which had focused on whether XRP was a security. These moves indicate a trend of removing regulatory roadblocks . The upcoming confirmation of Paul Atkins as the new SEC Chair is another key piece in this puzzle. Atkins is expected to support a more crypto-friendly direction. With two other commissioners, Mark Uyeda and Hester Peirce, already in favor of clearer crypto classifications, the path toward ETF approvals may be smoother. Analysts believe the SEC is preparing for a large-scale approval of altcoin ETFs once Atkins takes office. His confirmation hearing is expected to happen soon, possibly aligning with the next ETF decision deadlines. Crenshaw, however, continues to warn against rushing ahead. She noted that while the ruling excludes PoW assets from being securities in general, it still allows for exceptions if certain conditions apply. In her view, the guidance lacks legal weight and may give investors a false sense of clarity. Despite her concerns, Crenshaw’s influence may be fading as the Commission's direction shifts. Unless someone challenges these interpretations in court, they could quickly become industry norms. Overall, the SEC’s actions suggest that crypto regulation in the U.S. is heading toward a more flexible and supportive approach. This could pave the way for greater adoption and institutional interest in the crypto space—especially through regulated financial products like ETFs.
