The U.S. Securities and Exchange Commission (SEC) has made a recent decision to reject Solana (SOL)-based exchange-traded fund (ETF) applications in the final weeks of Gary Gensler’s tenure as the chair of the regulatory agency. According to reports from Fox Business journalist Eleanor Terrett, the SEC has informed at least two out of the five SOL ETF applicants that their filings will not be approved. Additionally, it has been revealed that the current SEC administration does not intend to approve any of the remaining applications.
Several financial firms, including VanEck, 21Shares, Canary Capital, Bitwise, and crypto asset manager Grayscale, have submitted applications to offer SOL ETFs. Grayscale also recently applied to convert its Solana Trust into a spot exchange-traded fund. Despite the rejections, senior ETF analyst at Bloomberg, Eric Balchunas, predicts that these firms will reapply with the new SEC regime next year, indicating a potential shift in regulatory stance.
Gensler, who announced his decision to step down in January following Donald Trump’s election victory, has been known for leading high-profile enforcement actions against various crypto firms during his tenure. Trump has nominated former SEC Commissioner and current Patomak Partners CEO, Paul Atkins, to succeed Gensler as the head of the SEC. In a letter penned in 2022 while at Patomak, Atkins highlighted the increasing interest of Americans in purchasing crypto assets for their retirement plans as they become more familiar with the digital asset space.
As the regulatory landscape continues to evolve, it remains to be seen how the new SEC leadership under Atkins will approach crypto-related ETF applications. The decision to reject SOL ETF filings in the final days of Gensler’s term has raised questions about the future of crypto ETFs in the U.S. market. Stay tuned for updates on how the SEC’s stance on crypto assets may impact the investment landscape moving forward. Subscribe to get email alerts for the latest developments and follow us on social media for real-time updates.