The U.S. Securities and Exchange Commission (SEC) has expressed concerns that Solana (SOL) may be classified as a security, casting doubt on the approval of a Solana Exchange-Traded Fund (ETF).
Key Developments:
1. SEC discussions with ETF issuers: The SEC shared concerns with ETF issuers, including VanEck and 21Shares, regarding Solana's potential security status.
2. No Form 19b-4 filing: The SEC and Cboe decided not to file the necessary Form 19b-4, effectively halting the SOL ETF approval process.
3. VanEck's registration statement remains: VanEck's registration statement for the Solana ETF is still available on the SEC's search engine.
4. 21Shares' registration statement withdrawn: 21Shares' registration statement has disappeared or been withdrawn.
Expert Insights:
Nate Geraci, ETF Store CEO, believes it is "virtually impossible" for a Solana ETF to be approved under the current administration, citing the SEC's stringent stance on crypto regulations.
Implications:
The SEC's concerns and subsequent actions indicate a challenging environment for crypto ETF approvals, particularly for assets like Solana, which may be deemed securities.
Conclusion:
The Solana ETF approval process has stalled due to the SEC's concerns over Solana's potential security status. As the regulatory landscape continues to evolve, crypto investors and ETF issuers face uncertainty.
