igns have emerged that the US Securities and Exchange Commission is likely to disapprove two spot Solana exchange-traded fund applications, reported Bloomberg ETFs senior analyst Eric Balchunas. The decision was described as a ‘ parting shot’ by Gensler in what could be his last months in the agency headed for retirement in January 2025.
Analytical Perspectives
Some of the Bloomberg’s analysts have applauded the decision while others have criticized it. Whereas Balchunas provides evidence that the rejection is intentional, his compatriot James Seyffart insists that it has to be done by the book. Seyffart argue that the SEC cannot approve Solana ETFs while at the same time is conducting litigation where it considers Solana as a security.
Future Expectations
Analysts expect the new faces at the SEC once Paul Atkins is in the chair to embark on a different course. As for issuers of related ETF products, they are likely to refil their proposed Solana ETF, which may lead to further delays in the approval period until 2025 or later.
Legal Complications
The rejection comes as part of larger regulatory issues, and an 81-page brief that the SEC it filed in the Binance lawsuit. Ripple’s chief legal officer, Stuart Alderoty, called the move “continuation of the failed arguments” about cryptocurrency evaluation.
Industry Reaction
Cryptocurrencies’ representatives regard the decision as an example of the lack of clear regulation in the field. VanEck’s ex-digital asset strategy director, Gabor Gurbacs, said about Gensler’s exit, it might mean shifts in the regulation.
Regulatory Roadblock
SEC’s position on Solana ETFs is an example of an indefinite conflict between cryptocurrency advancement and control; investors and industry players still wait for direction.
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