-Experienced financial lawyer Scott Jonsson shared his thoughts on the event, highlighting the legal hurdles facing Solana's "Etherium Killer". While Solana market ETFs do not require the cme to function as a special contract market (dcm), future markets must have a robust structure with a custody and security agreement (CSSA) and sufficient liquidity.
ETFs do not need to be CME as a DCM to list (having liquidity in a CSSA is sufficient).
In addition, Jonsson noted that ongoing litigation against major digital asset exchanges such as Coinbase and #Binance cast a shadow over the possibility of similar #SOL products. The SEC previously referred to #Solana as an unregistered security in its lawsuit against Coinbase and Binance.
While the lawsuit against Coinbase/Binance continues, no one intends to independently prove that SOL is a commodity futures product. Even if the CME (or another DCM) does a self-certification, the current SEC can and will block it," Jonsson said.
The lawyer also emphasized that major changes in SEC leadership and regulatory policy are needed before Solana will proceed with a registered fund. "Sol really needs a change in leadership to have a chance in the near future. Or the current SEC reversal will go much farther than one might expect. The former seems more likely," Jonsson says.
Bloomberg ETF strategist James Seyffarth agreed with Jonsson on the SEC's outlook, saying, "The SEC will not allow anyone to register Solana futures as 'commodity futures' with the CFTC. They made such mistakes with #bitcoin and Efirium. I highly doubt this admin will do it again. They will probably take retaliatory action.
Crypto futures allow investors to determine the price of an asset without having to physically own the underlying asset. Investors use them to bet on price fluctuations and hedge against asset volatility. Most people believe that futures are a prerequisite for ETFs. Thus, the news that CME has no plans to include Solana in the futures market is a sign that SOL will be getting a spot equity trading platform in the near future.
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