SEC Denies Two Solana ETF Proposals

Rejection of Spot Solana ETF Applications

According to a recent report by The Block, the U.S. Securities and Exchange Commission (SEC) has rejected two 19b-4 applications for spot Solana ETFs submitted by Cboe BZX on behalf of issuers. Following the rejection, these applications were promptly withdrawn from Cboe’s website. Sources indicate that the SEC’s primary concern was the classification of Solana (SOL) as a security, a stance previously expressed in court documents.

Tension Between SEC and Issuers

The rejected applications did not proceed to the Federal Register, meaning that the approval or rejection process was never initiated. A 19b-4 application, submitted by the exchange on behalf of issuers, triggers the SEC’s approval process once it is added to the Federal Register.

In contrast, the S-1 registration statement, which is prepared by issuers, does not have any specific time constraints or deadlines.

Conflict Over Spot Solana ETFs

At present, two companies are actively seeking SEC approval for their spot Solana ETFs:

• 21Shares – The disappearance of 21Shares’ S-1 form from the SEC’s EDGAR system suggests that the company may have stepped back from its application.
• VanEck – VanEck’s S-1 form remains active. VanEck’s head of research, Matthew Sigel, has confirmed that their application is still under consideration.

While the rejection of the 19b-4 applications may pose a temporary setback for spot ETF applicants, these forms can be resubmitted or updated with more compelling arguments that Solana is not a security in the future.

21Shares’ head of communications, Audrey Belloff, commented, “We cannot comment on the regulatory process at this time. We remain committed to expanding investor access to cryptocurrencies in the U.S. market and globally.” This statement offers a subtle insight into the current situation.