Will Gary Gensler Halt Solana ETF Approvals as Parting Gift to Crypto?
The US Securities and Exchange Commission (SEC) is making headlines with reports suggesting that Solana spot exchange-traded funds (ETFs) may face rejection. It looks like at least two of the five issuers who applied for a Solana ETF have been told their applications won’t be approved. This news comes as the SEC under current Chair Gary Gensler seems unlikely to give the green light to any new crypto ETFs during the Biden administration.
Experts in the field, like analyst Eric Balchunas from Bloomberg Intelligence, see this as Gensler’s way of wrapping up his term. He might be leaving the decision on Solana ETFs to the next administration. This decision is likely influenced by the SEC’s interpretation of Solana as a security or securities offering.
Despite potential roadblocks, interest in Solana ETFs remains high. Companies like Bitwise, VanEck, 21Shares, and Canary Capital have all expressed interest in launching Solana ETFs. Solana has been making waves in the market with its impressive growth, including a 160% increase in the price of its SOL token so far this year.
Looking ahead, with a new administration on the horizon, there could be a shift in regulatory approach. President-elect Trump’s incoming SEC Chair, Paul Atkins, is seen as more crypto-friendly, which could pave the way for Solana ETF approvals. Analysts believe it’s just a matter of when, not if, Solana ETFs will be approved under Trump’s administration, opening up new opportunities in the crypto-friendly capital markets.
As Gensler prepares to step down as SEC chairman, it’s possible that Solana ETF applicants might need to refile their applications under the new administration. In the meantime, the crypto market continues to show movement, with Bitcoin up 0.9% and Ethereum up 2% in the last 24 hours.
In conclusion, the future of Solana ETFs remains uncertain under the current SEC leadership, but there is hope for a more positive outcome with the incoming administration. Stay tuned for more updates on this evolving story.
