Solana ETF Launch Hits Roadblock As US SEC Sparks SOL’s Security Debate

The Solana ETF launch has been one of the widely discussed topics in the crypto town now, especially after Bitcoin and Ethereum Spot ETF trading started this year in the US. However, according to recent social media posts from Bloomberg analysts, the investment instrument of SOL faces major hurdles as the US SEC appears to have failed to acknowledge the filings. This development has triggered debits over whether the crypto should be classified as a security or not.

Solana ETF Launch In Jeopardy

The recent removal of Solana ETF filings by VanEck and 21Shares underscores the growing uncertainty surrounding the SEC’s stance on cryptocurrencies. Bloomberg ETF analyst Eric Balchunas, in a recent X post, highlighted that the filings did not progress beyond the second step due to the SEC’s lack of acknowledgment.

As a result, the exchanges had to pull their 19b-4 filings, effectively halting the approval process. Balchunas pointed out that the chances of approval are slim unless there is a shift in the SEC’s leadership. It’s worth noting that speculations soar in the US market with recent reports suggesting that Kamala Harris will likely appoint SEC Chair Gary Gensler to lead the Treasury Department under her presidency.

Meanwhile, this situation has fueled ongoing debates about SOL’s classification as a security. A social media user argued that it is inconsistent to classify the crypto as a security while Ethereum is not.

In response, Bloomberg analyst James Seyffart noted that the SEC is indeed making this argument in both courts and public forums. This comment has further fueled concerns over the potential launch of the SOL exchange-traded funds.

Adding to the complexity, the recent disappearance of the Solana ETF filings from the Cboe website has raised eyebrows. VanEck and 21Shares initially filed for a Spot Solana ETF in June, following the SEC’s approval of nine spot Ethereum ETFs. However, the removal of their 19b-4 filings has cast doubt on the future of the ETF approval.

VanEck Remains Optimistic On Potential Launch

Despite the regulatory challenges, VanEck remains optimistic about the approval of its Solana ETF. VanEck’s Head of Digital Asset Research, Matthew Sigel recently expressed confidence in SOL’s classification as a commodity, similar to Bitcoin and Ethereum.

Sigel cited evolving legal perspectives to support his stance, emphasizing that certain assets can be viewed as both securities and commodities, depending on the context. Notably, his view reflects a broader legal debate on how crypto assets should be regulated.

Meanwhile, he argued that while some assets might function as securities in primary markets, they may behave more like commodities in secondary markets. This nuanced perspective could play a crucial role in shaping future regulatory approaches to cryptocurrencies like SOL.

Notably, SOL price traded was up around 1% during the writing and exchanged hands at $144.14, with its trading volume rising 5% to $2.16 billion. Notably, the crypto has touched a high of $148.65 and a low of $141.36 in the last 24 hours. Meanwhile, a recent Solana price analysis showed that the crypto might face hurdles to hit $200, citing several conditions.

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Rupam Roy

Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.