- The SEC and exchange aggregator CBOE halted the process for a Solana ETF over concerns of SOL’s security status.
- CBOE removed the 19b-4 filings, likely reflecting the regulator’s caution given previous comments on SOL.
- Nate Geraci, an ETF expert, suggests that Solana ETFs don’t have a chance to secure approval under the current administration in the US.
- Solana gains 2% to $147 on Tuesday.
The US Securities and Exchange Commission (SEC) has halted the process of filing Solana ETFs amidst concerns over the status of Solana, according to a report from The Block. In a lawsuit filed against Coinbase, the SEC had listed SOL as a security, raising questions about the potential status of SOL.
While there is no legal clarity about the status of SOL, the exchange operator Chicago Board Options Exchange (CBOE) has opted to remove the related 19b-4 filings of issuers from its website.
Solana extended gains on Tuesday, up nearly 2% at the time of writing.
Solana ETFs filings disappear from CBOE website
The CBOE pulled Solana ETF 19b-4 filings by issuers from its website during the ongoing discussion on the asset’s status. The SEC expressed concerns over SOL’s status, the report from The Block says.
The SEC and CBOE agreed not to file 19b-4 forms to the Federal Register since that would push the approval process forward. It remains unclear whether issuers will submit new filings for Solana ETFs in the future and push for legal clarity on the asset.
Matthew Sigel, Head of digital assets research at VanEck, said on his X account that the firm believes SOL is a commodity, like Bitcoin and Ethereum. This belief is backed by informed legal perspectives, per Sigel. The executive notes that Solana made progress in decentralization and the top 100 holders of the asset now control 27% of the supply, a significant reduction from 2023.
Sigel is quoted from a recent tweet on X:
We remain committed to advocating this position alongside our exchange partners to the appropriate regulators
Some have noticed that the 19b-4 for the VanEck Solana ETF has been removed from the CBOE website.
— matthew sigel, recovering CFA (@matthew_sigel) August 19, 2024
Remember that Exchanges like Nasdaq & CBOE file rule changes (19b-4) to list new ETFs. Issuers like VanEck are responsible for the prospectus (S-1). Ours remains in play. https://t.co/9rbSHciSdy
XRP received legal clarity, Solana still in gray area
The SEC’s lawsuit against Ripple provided XRP legal clarity in a 2023 ruling. Judge Analisa Torres ruled that secondary market sales of XRP are not securities.
The July 2023 ruling was upheld in the final outcome of the SEC vs. Ripple lawsuit. Unless the SEC appeals the ruling, XRP enjoys a non-security status when sold on exchanges, while other altcoins like Solana wait.
Expert says Solana ETF’s don’t stand a chance at the time
Nate Geraci, president of investment advisor The ETF Store, said that Solana ETFs won’t have a chance of securing approval under President Biden’s administration in the US.
Yes…
— Nate Geraci (@NateGeraci) August 17, 2024
Solana ETF not happening anytime soon under current administration. https://t.co/z18gRIFzEr pic.twitter.com/zSL5PMjDC6
Scott Melker, crypto analyst, notes that the SEC is likely exercising caution given its previous stance on SOL, in lawsuits filed against exchanges like Coinbase and Kraken.
SEC Halts Solana ETF Progress
— The Wolf Of All Streets (@scottmelker) August 20, 2024
The SEC and Cboe halted the filing process for Solana ETFs due to concerns over Solana's classification as a security. Following discussions, they agreed not to submit 19b-4 filings, which would have initiated the approval process. This move… pic.twitter.com/RiJjACpJh9
Solana extends gains by nearly 2%, trading at $147 at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Cardano, XLM, FLOKI lead $3.1 trillion rally, Russia bans crypto mining, Bitcoin eyes $95K
Cardano (ADA) price action ADA’s ongoing rally has been attributed to rumors that the Trump administration could collaborate with the Cardano network to build a blockchain voting system.
Trump administration allegedly seeks to create new crypto position in White House
President-elect Donald Trump and his team are reportedly seeking to introduce a new White House position for crypto policy, Bloomberg reported on Wednesday.
Solana Price Forecast: Traders move 6.7B SOL as bulls target all-time highs
Solana price has succumbed to a 7% dip after rejecting the $250 resistance on Monday. Negative shifts in vital trading indicators suggest bears could delay the all-time high breakout target.
FLOKI to go live on Coinbase few days after the exchange listed PEPE and WIF
Floki Inu (FLOKI) is down 5% on Wednesday following crypto exchange Coinbase's announcement that the token will begin trading on its platform over the next 24 hours.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.