Solana ETF Sees Major Obstacle as SEC Contends its a Security
SEC and Cboe reached an agreement to refrain from filing the 19b-4 forms with the Federal Register, which would have triggered the formal approval process.
The U.S. Securities and Exchange Commission (SEC) has engaged in discussions with prospective Solana ETF issuers regarding its concerns about Solana’s potential classification as a security.
Moreover. these discussions have led to the withdrawal of related 19b-4 filings by Cboe BZX, effectively halting the approval process for Solana ETFs.
Why the Concern Over Solana ETF?
Notably, the SEC’s concerns stem from its previous statements in court filings that categorized Solana as a security. This stance has raised worries among issuers, who anticipate potential setbacks in gaining approval for Solana ETFs.
According to the source, the filing indicates that the SEC and Cboe agreed to refrain from filing the 19b-4 forms with the Federal Register, which would have triggered the formal approval process. Subsequently, the filing decision avoids pressure on the SEC to make a definitive decision on the Solana ETF applications.
The 19b-4 filings, typically submitted by exchanges on behalf of issuers, were removed from the Cboe website and the Federal Register. While S-1 registration statements, which don’t impose specific deadlines on the SEC, remain for some issuers, the lack of approved 19b-4 forms effectively stalls the approval process.
Solana Non-Security Status in Question
VanEck, a prominent ETF issuer, continues to maintain that Solana is a commodity similar to Bitcoin and Ethereum, despite the SEC’s classification. However, the company will present a stronger case for Solana’s non-security status through potential future filings or amendments to the 19b-4 forms.
The SEC’s scrutiny reflects the agency’s cautious approach towards cryptocurrencies and their classification as securities. While Bitcoin and Ethereum ETFs have secured approval, many market observers anticipate significant hurdles for Solana ETFs.
Additionally, Various experts predict that the approval process for Solana ETFs is unlikely to proceed under the current administration, with hopes for a potential shift in the regulatory landscape after the next presidential election.
Nonetheless, the ongoing debate about Solana’s status underscores the challenges and uncertainties surrounding the regulation of cryptocurrencies in the United States. Issuers remain committed to expanding investors’ access to cryptocurrencies, but the SEC’s stance on Solana’s security status remains a critical obstacle to achieving this goal.
