Gushiken Yona
The path to a Solanа ETF just got rockier. The U.S. Securities and Exchange Commission (SEC) has reportedly expressed concerns over Solana’s potential classification as a security, ahead of the vanishing of the 19b-4 filings for prospective Solana ETFs from the Cboe.
According to a recent report which quoted “sources familiar with the matter,” as its source of information, the SEC held discussions with potential Solana ETF issuers, including VanEck and 21Shares, regarding its concerns about Solana’s regulatory status. Following these discussions, both the SEC and Cboe reportedly mutually agreed to withdraw the 19b-4 filings from the Cboe BZX and agreed to no longer file them to the Federal Register, effectively putting the brakes on the approval process.
The 19b-4 forms, a critical component of ETF applications, are typically filed by exchanges on behalf of issuers and officially initiate the SEC’s formal review process. However, these filings, originally submitted on July 8, mysteriously disappeared from the Cboe website over the weеkend, fueling speculation within the crypto community.
Industry experts believe that the SEC’s concerns stem from ongoing uncertainty surrounding the classification of digital assets as securities or commodities. This regulatory ambiguity has presented significant hurdles for crypto ETF hopefuls, as the SEC has yet to greenlight a spot Bitcoin ETF, citing concerns over market manipulation and investor protection.
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While the withdrawal of the 19b-4 filings is undoubtedly a setback for proponents of a Solana ETF, it doesn’t necessarily signify a complete dead-end. The source indicated that issuers might resubmit these filings in the future, incorporating stronger arguments to address the SEC’s concerns about Solana’s status.
The recent disappearance of 19b-4 filings from the Cboe supports our previous reporting, whiсh included insights from veteran finance lawyer and venture capitalist Scott Johnson.
“Gary [Gensler, SEC Chair] says SOL ETF is DOA under his watch.” Johnson suggested that the SEC may have informally communicated their disapproval to the Chicago Board Options Exchange (CBOE), indicating that the Solana ETFs were incorrectly categorized as Commodity-Based Trust Shares. This misclassification, Johnson posits, could explain the lack of a formal written rejection from the SEC.
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Johnson further speculated that the missing SEC notice suggests the applications were deemed flawed from the outset. “Instead of running through the full 19b-4 process, I’m assuming Gary notified CBOE that these SOL apps were improperly filed as Commodity-Based Trust Shares (because he thinks SOL isn’t a commodity),” he stated, pointing to the quiet removal of the forms from the CBOE website without a formal withdrawal as further evidence.
Back in June, Bloomberg Intelligence ETF analyst James Seyffart offered a prescient observation: “First SOL ETF filing in the U.S. Will be interesting to see if other issuers immediately follow suit. Early thoughts are that this only has a shot to launch sometime in 2025 if we have a new admin in the White House and SEC. Even then not guaranteed.”
Ultimately, the fate of a Solana ETF, and indeed any spot crypto ETF in the U.S., rests on the SEC’s evolving approach to digital asset classification. Until greater regulatory clarity emerges, the path to launching such products will remain fraught with uncertainty.
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YONA GUSHIKEN
Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.
