Solana ETF faces delays as SEC questions SOL's security status
The approval of a Solana (CRYPTO:SOL) ETF has hit a significant roadblock as the U.S. Securities and Exchange Commission (SEC) continues to classify SOL as a potential security.
This ongoing concern has led to the removal of 19b-4 forms filed by VanEck and 21Shares from the Chicago Board Options Exchange (Cboe) website, effectively delaying the listing of Solana ETFs.
In June 2023, the SEC labeled 12 tokens, including SOL, as securities, leading to resistance from various projects.
The SEC’s skepticism regarding SOL’s classification has now impacted the progression of Solana ETFs, with the 19b-4 forms, which are essential for initiating the ETF approval process, being pulled from the Federal Register.
These forms are critical as they outline the necessary requirements and disclosures for listing an ETF on a stock exchange.
While VanEck’s S-1 registration statement for its Solana ETF still appears on the SEC’s EDGAR filing system, 21Shares’ S-1 registration statement is no longer visible in search results, though a direct link remains functional.
This development underscores the SEC's cautious approach, given its previous stance on SOL potentially being a security.
In contrast, ETFs for peer cryptocurrencies like Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) have been approved, but the likelihood of a Solana ETF being approved soon appears low.
Industry experts, including Nate Geraci, President of the ETF Store, express skepticism about the approval of a Solana ETF under the current administration, suggesting it may not happen until 2025, if at all.
SEC Commissioner Hester Pierce, known as 'crypto mom,' has also indicated that the regulator requires more convincing before approving a Solana ETF, citing concerns over what constitutes a security.
The SEC's classification of SOL and other tokens as securities has led to ongoing regulatory challenges, with crypto enthusiasts voicing concerns that the U.S. may lag behind other countries, such as Canada, in issuing Solana ETFs.
The delay in approving a Solana ETF highlights the broader regulatory uncertainty surrounding cryptocurrencies and their classification within the financial system.
At the time of writing, Solana is priced at $142.56.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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