Today, the SEC announced that cryptoassets using Proof-of-Work are not subject to securities regulations. Based on this clarity and the SEC's recent actions, BeInCrypto analysts predict that the SEC will approve multiple altcoin ETFs simultaneously by the end of Q2 2025.

Meanwhile, SEC Commissioner Caroline Crenshaw, an anti-crypto advocate, issued another public dissenting statement today. She argued that the decision has many flaws, but it will be difficult to stop a strong pro-crypto agenda.

SEC Laying the Groundwork to Approve More ETFs

In a press release today, the Commission determined that cryptoassets using Proof-of-Work are not considered securities under U.S. law. Like Bitcoin, this entire class of assets should be treated as commodities. The SEC's decision here could have a significant impact on altcoin ETFs.

"In the [SEC's] view, mining activities are not tied to the offer and sale of securities [and] that participants in mining activities do not need to register the transactions with the Commission under the Securities Act or be subject to one of the Securities Act's registration exemptions," the SEC statement said.

This regulatory clarity may change the approvability of ETFs for some Proof-of-Work (PoW) cryptoassets. For example, Litecoin, which falls into this category, has a high chance of being approved.

With this decision, many asset managers may be inclined to provide ETFs for other PoW assets, such as Monero or Kaspa.

However, this trend may extend beyond PoW cryptoassets in general. The SEC has repeatedly stated that certain assets are commodities.

For example, in February, they declared that meme coins are not securities. This could clarify regulatory hurdles for Dogecoin ETFs.

SEC Wants Paul Atkins to Start Fresh

In other words, the SEC may be declaring that all these assets are not securities as a way to lay the groundwork for any future ETF applications. Viewed from this angle, even a few clear failures could be a foundation for future successes.

For example, the Commission delayed Solana and XRP ETF applications last week. However, the CFTC has approved futures trading on both assets, increasing their ETF approval chances.

Meanwhile, the Commission also dropped the high-profile lawsuit against Ripple, based on the assumption that XRP is a security.

So, all these decisions are collectively removing any regulatory barriers that could limit altcoin funds from entering the institutional market.

Next week, the Senate will begin confirmation hearings for Paul Atkins, Trump's pick for the next SEC Chair. By the time those applications hit other deadlines, Atkins may already be in place.

Atkins is likely to easily approve a slew of diverse altcoin ETFs, as Mark Uyeda and Hester Peirce have clarified the securities vs. commodities debate.

"Trump's pick for SEC Chair, Paul Atkins, will face the Senate Banking Committee next Thursday for his confirmation hearing. Trump's pick for OCC, Jonathan Gould, will also have his hearing," Eleanor Terrett wrote.

Crenshaw Speaks Up Again

Based on current regulatory trends and the SEC's actions, BeInCrypto predicts that the Commission is preparing to approve several altcoin ETFs in Q2 2025.

However, not everyone on the Commission is ready to agree with this. Caroline Crenshaw, a recent Commissioner, has publicly dissented against the SEC's pro-crypto shift, and also criticized today's decision.

"Buried in the footnotes, the statement reveals the actual limits of its reach: in reality, one would have to conduct a Howey analysis to determine whether a particular mining arrangement constitutes an investment contract. For the sake of investors, other market participants, and the market itself, I hope readers do not mistake it for anything more," she said.

Crenshaw argued that the SEC's reasoning has many serious flaws and does not truly ensure that PoW tokens are not subject to securities laws.

She said today's decision is the "tenth non-binding interpretation" in the past nine weeks, though she did not directly accuse her colleagues of issuing biased rulings to support the crypto industry.

However, Crenshaw's time at the SEC is winding down. If no one wants to scrutinize these flaws, then functionally, it's as if they don't exist.