SEC Postpones Verdict on ETF Proposals for Solana
In a recent announcement, the U.S. Securities and Exchange Commission (SEC) has decided to postpone its verdict on several proposals concerning exchange-traded funds (ETFs) that would track Solana’s price, as revealed in regulatory documents released on Monday. The agency indicated that it requires additional time to consider various legal and policy implications surrounding applications submitted by companies such as 21Shares, Bitwise, VanEck, and Canary Capital.
Despite the extensions, the SEC emphasized that this does not imply any predetermined stance on whether these ETF proposals will ultimately be approved or denied.
The SEC stated, “Instituting proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved.”
They also encouraged public engagement, inviting comments from interested parties concerning the proposed regulatory changes.
Surge in ETF Applications Amid Regulatory Changes
This delay coincides with a surge in ETF applications that encompass a diverse array of digital assets, from popular meme coins like Official Trump, Bonk, and Dogecoin to NFTs such as Pudgy Penguins, alongside established cryptocurrencies like Solana. Following the election of former President Donald Trump in November, asset managers have inundated the SEC with various digital asset investment product proposals, spurred on by signals from the new administration suggesting that pro-crypto figures would be appointed to regulatory positions and the ETF regulatory framework would undergo significant updates.
This has led to heightened speculation that approvals for crypto-related investment vehicles might proceed more swiftly.
Caution from Industry Insiders
However, industry insiders advise caution. Juan Leon, Chief Financial Analyst at Bitwise Asset Management, suggested that while there is enthusiasm about the SEC’s openness to crypto, stakeholders should temper their expectations. Leon commented to Decrypt,
“People anticipated that the SEC would rush to approve all applications upon submission, but the process is more complex and bureaucratic than many realize.”
He cautioned, “There is clearly potential for disappointment in the market, but I believe we are nearing a turning point in regulatory attitudes, paving the way for a range of new products in the coming years.”
— by James Rubin
