The U.S. Securities and Exchange Commission (SEC) has raised concerns with prospective issuers about Solana’s (SOL) classification as a security, according to a source familiar with ongoing talks. These discussions reportedly occurred before the Cboe BZX Exchange removed related 19b-4 filings, which were crucial for the approval process of SOL ETFs.
Following these talks, the SEC rejected the 19b-4 forms, according to another source. As a result, the documents were removed from the Cboe website and not filed with the Federal Register. This maneuver effectively halted the approval timeline, which would have otherwise put pressure on the SEC to reach a decision regarding Solana ETFs.
Over the weekend, it was observed that the filings were no longer visible on the Cboe website, nor are they on the Federal Register. For ETFs to be approved, the 19b-4 forms must gain SEC approval, while the S-1 registration statements need to be effective. Notably, S-1 forms do not impose a specific deadline on the SEC.
Currently, two issuers, 21Shares and VanEck, are pursuing Solana ETFs. Their applications remain active on the SEC’s EDGAR system. VanEck’s Head of Research, Matthew Sigel, confirmed that their submission is still in play.
SEC Identifies Solana as a Security
The SEC’s stance on SOL is not surprising. The agency has previously identified Solana as a security in several court filings. Industry insiders suggest that the applications could face additional setbacks. However, some expect new filings or amendments to argue more strongly against Solana’s classification as a security.
Audrey Belloff, head of communications at 21Shares, stated, “We are unable to comment on the regulatory process at this time. We remain committed to expanding investor access to cryptocurrencies in the U.S. market and around the world.”
While Bitcoin and Ethereum ETFs have passed regulatory scrutiny, experts believe Solana ETFs face a steeper challenge. On August 17, Nate Geraci, president of The ETF Store, stated that Solana ETFs are unlikely to receive approval under the current administration. Bloomberg’s ETF analyst James Seyffart echoed this sentiment, suggesting approval could be delayed until 2025, contingent on a new SEC administration.
VanEck and the Cboe have yet to comment on the situation. The SEC also declined to provide a statement.
