- CBOE Withdrawal of Solana ETF Application
- SEC Concerns Over SOL as a Security
- Future of Solana ETF Amid Regulatory Changes
The U.S. Securities and Exchange Commission (SEC) has taken a significant step by postponing the approval process for a Solana (SOL)-based ETF, citing ongoing concerns about the classification of Solana as a security.
CBOE Withdrawal of Solana ETF Application
According to Zycrypto, the latest development occurred after intensive discussions between the SEC and the prospective ETF issuer, leading the CBOE BZX Exchange to withdraw the 19b-4 form relating to Solana. The withdrawal of these forms, which are crucial for initiating the approval process, effectively delays the SEC's decision on the SOL-based ETF. A social media observer known as Summer noted over the weekend that these forms were removed from the CBOE website and are no longer listed in the Federal Register, indicating a pause in the process. Additionally, the S-1 statement from 21Shares, another crucial document in the ETF approval process, was also withdrawn from search results. As of the latest update, only the S-1 registration statement from VanEck for the Solana ETF remains visible in the SEC's filing system, highlighting uncertainty about the project's future.
SEC Concerns Over SOL as a Security
According to an insider familiar with the situation, the SEC's concerns about Solana's status as a security may be the main reason behind CBOE's decision not to proceed with the 19b-4 form submission. These forms are usually filed by exchanges on behalf of the ETF issuer to initiate the approval process. Their withdrawal indicates a cautious approach, likely influenced by the SEC's previous legal stance in cases against major crypto exchanges like Binance and Coinbase, where Solana was named as a potential security. The delay in the approval process has sparked speculation that ETF issuers may resubmit revised 19b-4 forms with stronger arguments against Solana's classification as a security. Previously, Matthew Siegel, Head of Digital Asset Research at VanEck, hinted at this possibility, emphasizing that the removal of some applications from the CBOE website does not necessarily mean the end of the Solana ETF.
Future of Solana ETF Amid Regulatory Changes
The fate of the Solana-based ETF is now closely tied to broader political and regulatory developments. In June, Bloomberg analyst Eric Balchunas commented that the Solana ETF might only be approved if there is a change in the U.S. government. Recently, James Seyffart from Bloomberg Intelligence also suggested that approval might not happen until 2025, depending on future political shifts. Despite facing these regulatory hurdles, Solana's price has shown resilience. Although the cryptocurrency has seen a significant drop of more than 13% over the past month, it has remained relatively stable over the past week.
The SEC's postponement of the decision on a Solana-based ETF underscores the importance of regulatory aspects in the crypto market. The future of the ETF will depend on further legal and political changes.
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