- Gary Gensler’s SEC reportedly poised to reject Solana ETFs.
- Current applicants may need to refile under incoming Trump administration.
- SOL price has risen over 160% this year.
The US Securities and Exchange Commission (SEC) appears poised to reject multiple filings for Solana spot exchange-traded funds (ETFs), potentially leaving their fate to the incoming administration.
At least two of five prospective issuers have reportedly been notified of rejection, according to Fox Business reporter Eleanor Terrett, who cited sources saying the SEC is unlikely to approve any new crypto ETFs under the Biden administration.
Bloomberg Intelligence analyst Eric Balchunas remarked that this 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 the agency’s ongoing classification of Solana as a security or securities offering.
“If I were Gensler, I just wouldn’t acknowledge these. Leave it to the next admin to figure this mess out,” Seyffart remarked.
Solana ETF interest
Several prominent firms, 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 surging user activity.
“Solana is telling a story that smart money is coming this way,” said Eliezer Ndinga, head of strategy at 21.co, highlighting the ecosystem’s momentum and appeal to investors.
Solana’s rapid growth in 2024, with its SOL token surging 160% year-to-date, has also attracted institutional attention.
Incoming administration
Looking ahead, analysts predict a shift under President-elect Donald Trump’s incoming SEC Chair, Paul Atkins, a crypto-friendly 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 accommodating stance toward crypto markets.
Analysts like Seyffart say Solana ETFs are still a question of “when, not if,” with Trump’s administration expected to unlock new opportunities for crypto-friendly capital markets.
Gensler will step down as SEC chairman on January 20.
If Gensler indeed blocks the Solana ETF approvals, Balchunas expects they will refile under the Atkins administration.
Crypto market movers
- Bitcoin is up 0.9% over the last 24 hours to $99,550.
- Ethereum is up 2% to $3,980.
What we’re reading
- Coinbase’s top lawyer says Operation Chokepoint 2.0 is ‘no conspiracy theory’ — and he has the proof — DL News
- Warren Will Have Significant Say in Selecting the Democratic SEC Commissioner — Unchained
- Did Hawk Tuah Crypto Debacle Eclipse Bitcoin’s $100K Moment? — CoinDesk
- How high will XRP go? ‘Explosive’ rally seen for Ripple token’s price — DL News
- US spot Bitcoin ETFs surpass Satoshi’s estimated 1.1 million BTC holdings — The Block
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
