SEC requests Blackrock to add specific language to their ETF filing

The partial language SEC requested to be added was:

"If a digital asset is determined or asserted to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied in the United States through the same channels used by non‑security digital assets, which in addition to materially and adversely affecting the trading value of the digital asset is likely to significantly impact its liquidity and market participants’ ability to convert the digital asset into U.S. dollars"

For a moment I was concerned because this is "the" ETF. However, after thinking about it;

SEC has said over and over that it is not a security. It has no issuer etc. So, this leads me to believe that the SEC is just covering their bases for when businesses apply for ETFs with XYZ alt coins.

Any alts that are even within remote question would need to go through heavy financial auditing etc. to prove it is not a security before an ETF is even considered.

I think the real question begs; are most alt coins going to be ok with lengthy audits just to be in hopes of being deemed a security to then be considered for an ETF? Or will most not even try at the risk of SEC uncovering things they didn't really want to reveal? I'm just having a hard time believing that there would be any other ETFs that would be considered with any kind of ease after what we've seen over the last 3 years.