Bitrabo Editorial
The US Securities and Exchange Commission (SEC) has declined the submission of Solana ETF proposals by Cboe Global Markets due to concerns over Solana’s regulatory status and whether it should be classified as a security.
Solana ETF Plans Stalled
Bloomberg ETF expert Eric Balchunas mentioned that the Solana ETF filings didn’t progress beyond the second step of the SEC’s review process. Balchunas suggested that without regulatory approval, the likelihood of approval for Solana ETFs is extremely low unless significant changes happen at the Commission.
The SEC’s reservations about Solana’s classification have led Cboe to retract the related forms from its website recently.
James Seyffart, also an ETF expert, highlighted the SEC’s active argument regarding certain cryptocurrencies’ classification in court, emphasizing the contrast between SOL being considered a security and Ethereum (ETH) not.
Although Cboe withdrew its filings, VanEck’s S-1 registration statement for a Solana ETF is still active on the SEC’s EDGAR system.
VanEck’s Position on Solana as a Commodity
VanEck’s Head of Digital Assets Research, Matthew Sigel, stated that the company believes SOL should be treated as a commodity akin to Bitcoin (BTC) and Ethereum due to its progress in decentralization.
Sigel pointed out various factors supporting Solana’s commodity status, such as reduced concentration of SOL holdings and the growth of validators worldwide.
Sigel also mentioned the upcoming Firedancer client for the Solana blockchain, developed by Jump Crypto, to enhance Solana’s decentralization, further preventing dominance by one entity.
Despite the regulatory uncertainties, VanEck is steadfast in advocating for Solana’s classification as a commodity.
The ongoing debate over Solana’s regulatory status reflects the challenges faced by the industry in gaining approval for crypto-based investment products beyond the major cryptocurrencies. The future for Solana ETFs remains uncertain as the SEC stands firm on their position.
SOL is currently trading at $142, showing minimal change from the opening price on Monday.
Featured image by DALL-E, chart from TradingView.com