SEC Rejects Solana ETFs, Halts New Approvals
- The SEC has rejected at least two filings for spot Solana ETFs, casting doubt on the future of crypto ETFs under the current administration.
- The absence of a Solana futures market and its classification as a security under certain conditions pose significant challenges for ETF approval.
- While there was initial optimism due to the political climate, the recent rejections have dampened hopes for a more crypto-friendly regulatory environment in the U.S.
The future of Solana ETFs in the U.S. remains uncertain after the SEC notified at least two of the five prospective issuers that they would be rejected for their 19b4 filings for spot filings. This has dampened investors sentiment who were rooting for the approval.
Confirming the news, FOX reporter Eleanor Terrett stated, Ive confirmed that @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs.
This development received mixed reaction from crypto enthusiasts and industry experts. According to Terrett, the consensus is that the SEC will not approve any new crypto ETFs under the current administration.
One Twitter user, reacting to the news, expressed optimism, suggesting that at least one of the five filings might still be approved. However, Terrett dismissed this possibility, drawing parallels to the launch of Bitcoin ETFs. She emphasized that the SEC typically approves multiple ETFs simultaneously, rather than approving a few while rejecting others.
This latest action by the SEC underscores the regulatory uncertainty surrounding cryptocurrencies in the United States.
Solana ETF: Regulatory Hurdles and Absence of Futures Market
Skepticism regarding SOL-based ETFs have persisted in the U.S. market, mainly due to regulatory hurdles and the absence of a futures market for Solana. This is in contrast to Bitcoin and Ethereum ETFs, which benefited from the existence of futures markets, that addressed concerns about fraud and market manipulation. Experts believe that introducing a SOL futures ETF could serve as a precursor to securing spot ETF approval.
Another major hurdle is Solanas classification as a security under certain conditions. Unlike commodities such as Bitcoin or Ethereum, securities require compliance with stricter disclosure and reporting standards. This classification complicates the approval process, as ETFs linked to securities must meet heightened regulatory requirements.
While the current regulatory landscape presents challenges, there was a glimmer of hope with the shift in the U.S. political scene. Now the recent rejection of spot Solana ETF filings casts a long shadow over the prospects of a more crypto-friendly regulatory environment. Some investors and industry players however remain hopeful for future approvals.
Read more: https://www.tronweekly.com/sec-rejects-solana-etfs-halts-new-approvals/
Text source: TronWeekly
