- Gary Gensler’s SEC is reportedly on the verge of rejecting Solana ETFs.
- Current applicants may need to reapply under the new Trump administration.
- The price of SOL has increased by over 160% this year.
The U.S. Securities and Exchange Commission (SEC) appears poised to reject several Solana spot exchange-traded fund (ETF) filings, potentially leaving their fate to the new administration.
At least two of the five potential issuers were reportedly informed of their rejection, according to Fox Business reporter Eleanor Terrett, who cited sources saying the SEC is unlikely to approve new crypto ETFs under the Biden administration.
Eric Balchunas, an analyst at Bloomberg Intelligence, noted that it was Gensler’s “parting gift.”
Bloomberg Intelligence analyst James Seyffart echoed Terrett’s sentiment, stating that the SEC’s Trading and Markets division is unlikely to greenlight a Solana ETF given Solana’s current classification by the agency as a security or offering of securities.
“If I were Gensler, I just wouldn’t recognize them. Leave it to the next administrator to resolve this problem,” Seyffart remarked.
Solana ETF Interests
Several prominent companies, including Bitwise, VanEck, 21Shares and Canary Capital, have filed to launch Solana ETFs.
Institutional interest in Solana has grown due to its speed, scalability, and increasing user activity.
“Solana is a story that the smart money is coming this way,” said Eliezer Ndinga, head of strategy at 21.co, highlighting the dynamics of the ecosystem and its appeal to investors.
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Solana’s rapid growth in 2024, with its SOL token up 160% year-to-date, has also attracted the attention of institutions.
Incoming Administration
Looking ahead, analysts predict a shift under President-elect Donald Trump’s new SEC chairman Paul Atkins, a pro-crypto figure who has championed digital asset innovation.
Trump’s pro-crypto regulatory appointments, including Atkins, Treasury Secretary pick Scott Bessent, and Commerce Secretary nominee Howard Lutnick, suggest a more dovish stance toward crypto markets.
Analysts like Seyffart say Solana ETFs are still a matter of “when, not if,” with the Trump administration expected to open up new opportunities for crypto-friendly capital markets.
Gensler will step down as SEC chairman on January 20.
If Gensler does indeed block Solana ETF approvals, Balchunas expects them to refile under the Atkins administration.
Crypto market players
- Bitcoin is up 0.9% over the past 24 hours to $99,550.
- Ethereum is up 2% at $3,980.
What we read
Kyle Baird is the weekend editor for DL News. Do you have any advice? Email to kbaird@dlnews.com.
