Is Solana a Security? SEC Rejects Cboe's Solana ETF Filings

The U.S. Securities and Exchange Commission (SEC) recently rejected applications for Solana ETFs, blocking its entry into traditional financial markets. While Bitcoin and Ethereum ETFs have been approved, Solana’s unclear status as security remains a key hurdle.

This has led to debate among investors, questioning why Solana is being treated differently from other major cryptocurrencies like Ethereum and XRP.

SEC Rejects Filings: What’s the Reason?

Over the weekend, alert market watchers noticed that applications for Solana ETFs by VanEck and 21Shares had been removed from the CBOE’s website. These applications, known as 19b-4 forms, were never officially submitted to the Federal Register, likely due to concerns over Solana’s classification as a security.

This follows the SEC’s recent efforts to change the status of assets like SOL, MATIC, and ADA in its ongoing legal case with Binance.

Forms 19b-4 for VanEck and 21Shares Solana ETFs appear to have been removed from the CBOE website.
Documents SR-CboeBZX-2024-066 & SR-CboeBZX-2024-067 aren’t accessible anymore via direct link, and are no longer visible in BZX Pending Rule Changes.
Another interesting thing is… pic.twitter.com/t81kVGJ3uH
— Summers (@SummersThings) August 16, 2024

If these filings had been submitted to the Federal Register, the SEC would have faced a deadline to make a decision, putting pressure on the agency. However, by rejecting these filings, the SEC has effectively paused any progress, suggesting that Solana ETFs in the U.S. might not be approved soon.

Comparisons with Ethereum and XRP

Meanwhile, Lark Davis, a prominent crypto investor, voiced his concerns on X, asking why Solana is being singled out when both Ethereum and XRP have been viewed as non-securities.

The SEC has rejected Cboe’s Solana ETF filings.
Looks like the SEC is trying to label $SOL as a security.
If $ETH isn’t a security
If $XRP isn’t a security
What makes $SOL a security?
— Lark Davis (@TheCryptoLark) August 20, 2024

The rejection of the Solana ETF filings by the SEC has added to the uncertainty surrounding Solana’s regulatory status, leaving many to speculate about the future of this popular blockchain project.

Solana Price Analysis

As of now, Solana is currently trading at $143.46, down 3% in the last 24 hours and 1.37% over the week. Despite the SEC’s recent rejection of a Solana ETF, the cryptocurrency continues to attract interest from developers and investors for its potential in decentralized applications.

Technically, Solana’s price structure remains strong, staying above key levels like the 200-day EMA and crucial support areas at $140 and $130. The MACD indicator is close to issuing a buy signal on the daily chart, reinforcing the bullish outlook for SOL, with a potential target of $200

Source: https://coinpedia.org/news/sec-rejects-cboes-solana-etf-filings-is-solana-being-targeted-as-a-security/