The US Securities and Exchange Commission (SEC) is reportedly set to reject two spot Solana (SOL) exchange-traded funds (ETF) applications, as revealed by Bloomberg ETF senior analyst Eric Balchunas. Balchunas described these rejections as Chair Gary Gensler’s “parting gift” to the crypto industry.
Fox News correspondent Eleanor Terrett also disclosed that sources from two Solana ETF issuers confirmed that the SEC will not greenlight any new crypto-related ETF under Gensler’s leadership. Gensler is expected to step down on January 20, 2025. Balchunas anticipates that the issuers will refile the Solana ETF applications once Paul Atkins assumes the role of SEC chair, as confirmed by President-elect Donald Trump on November 27.
In response to this development, former VanEck digital asset strategy director Gabor Gurbacs remarked that Gensler will soon depart from his position, to which Balchunas humorously commented, “This was his parting gift I guess.” However, Bloomberg ETF analyst James Seyffart argued that Gensler had no alternative but to reject the Solana ETFs, given the SEC’s stance on SOL as a security in ongoing lawsuits.
Seyffart emphasized that the new SEC administration will need to address the crypto lawsuits involving SOL’s classification as a security before considering any new ETF approvals. This delay pushes back the projected approval timeline for the Solana ETFs, initially estimated by Seyffart to conclude in August 2025, with the possibility of further extensions.
Additionally, Seyffart highlighted the SEC’s recent involvement in the Binance case as the actual parting gift from Gensler. Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC’s decision to file an 81-page document urging the court not to dismiss the Binance lawsuit, which accuses the exchange of offering investment contracts through 11 tokens. Alderoty expressed disappointment in the SEC’s persistence in crypto litigation under Gensler’s leadership, despite the impending leadership change.
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