The SEC is preparing for pivotal changes in the cryptocurrency sector, potentially leading to the approval of ETFs for PoW altcoins.
SEC Establishes Framework for Altcoin ETFs
On March 20, the SEC announced that PoW cryptocurrencies do not meet the criteria of securities under U.S. law. This allows these digital assets, including Bitcoin, to be classified as commodities. The SEC emphasized that mining operations should not be interpreted as securities offerings and sales.
Will Litecoin Lead the Charge?
This announcement could be a turning point for altcoins aspiring for ETF approval. Litecoin is already considered a prime candidate, and other PoW altcoins such as Monero and Kaspa may also file their ETF applications. Additionally, the SEC’s recent declaration regarding memecoins could open the door for ETFs related to projects like Dogecoin.
Internal Divisions within the SEC
Significant divisions persist within the SEC regarding these decisions. SEC member Caroline Crenshaw has voiced concerns, arguing that the announcement creates legal ambiguities and that further evaluation should be conducted to determine whether mining activities are classified as securities. Despite the criticisms, changes are likely to continue.
These regulatory structure changes may substantially bring the stage of ETF approvals for PoW altcoins closer. Internal disagreements remain, but the current SEC administration seems determined to move forward.
