The U.S. Securities and Exchange Commission (SEC) is preparing for a significant turning point in the cryptocurrency world. Recent consecutive decisions indicate that ETF approval is close, especially for altcoins with a Proof of Work (PoW) mechanism. With the appointment of the new SEC chair nominee Paul Atkins, the process is expected to accelerate. Experts believe that multiple altcoin ETFs could receive collective approval in the second quarter of the year. However, dissenting voices are also rising against these developments.

On March 20, the SEC stated in a press release that cryptocurrencies operating with the PoW mechanism are not securities under U.S. laws. This announcement means that PoW-based cryptocurrencies like Bitcoin (BTC) fall into the commodity category. The SEC noted that such mining activities are not considered 'offering and selling of securities.'

Approval of ETFs for altcoins could be a critical turning point. (LTC) was already one of the strong candidates for ETF approval. With this development, ETF applications may also come for other PoW-based altcoins like Monero (XMR) and Kaspa (KAS).

However, the SEC's approach is not limited to PoW-based altcoin projects. The regulatory body announced in February that memecoins are also not securities. This announcement could pave the way for ETF applications for projects like (DOGE).

Crenshaw Criticizes SEC's Decision Harshly

SEC member Caroline Crenshaw once again publicly expressed her dissent regarding the decisions made. Crenshaw argued that the announcement contains numerous legal loopholes. She stated that it is still necessary to conduct a Howey test to determine whether mining activities are securities.

According to Crenshaw, the SEC's decision is a non-binding interpretation and does not provide full protection to investors. The SEC member emphasized that 10 similar interpretative decisions have been made in the last 9 weeks. However, she avoided directly accusing other commission members of bias in favor of cryptocurrencies.

Crenshaw's term is about to expire, and despite her statements, it is likely that these interpretations will become practically valid. Because as long as no one brings these gaps to court, the decisions will be valid in practice. The SEC's stance on cryptocurrencies has led to serious disagreements within the institution.