Will Solana ETFs Join Bitcoin and Ethereum? Experts Say SEC Just Entered ‘New Territory’

The Securities and Exchange Commission on Thursday recognized An application for a place Solana ETF indicates that the framework of the Bureau for Crypto products can shift soon.

Under former SEC chairman Gary Gensler, the regulator had a high beam, only Greenlighting applications for Bitcoin And Ethereum Products. In recent months, asset managers have expressed the wish to offer similar ETFs that cover coins, including XRP, Litecoin, Dogecoin and Solana.

Solana is unique under digital assets where settings are Jockeyen Settings to offer products. The SEC had lawsuits in 2023 Binance and CoinbaseTwo of the leading exchanges of the industry, which Solana exchanged on their platforms as a non -registered security.

While the sec has had since drop Accusations with regard to the regulatory status of Solana in his Binance case, the alleged distinction is still important. Spot Bitcoin and Ethereum ETFs opened the door to a tsunami of the Wall Street inflow, but they were approved as trusts based on raw materials.

On Thursday, the SEC submitted a notification of a change of rule, proposed by Nyse Arca, who would enable the stock market, the Grayscale Solana Trust as precisely to mention that to be mentioned on raw materials.

The application recognized by the SEC includes an establishment that Solana is not safety, pointing to interpretations of SEC guidelines, securities laws and recent judicial judgments. That is a small but important step, said Bloomberg ETF analyst Eric Balchunas on X.

“This is the first time that an ETF entering a coin that had done [previously] A ‘security’ called is recognized by the SEC, ‘he said. “So we are now in new territory, albeit only a baby step, but apparently the direct result of changes in leadership.”

The SEC could be properly approved the proposed change of rule of NYSE Arca, but the agency can postpone its final decision up to 240 days, or until approximately early October. The approval of the control change would implicitly acknowledge that Solana is a merchandise, but the GSR investigation told Brian Rudick to Brian Rudick Decrypt that the process of the agency is ‘quite nuanced’.

At the end of the day: “The outcome is especially what the SEC wants to do”, and the recognition of a Solana ETF application does not necessarily mean that it will be approved.

If the SEC Spot Cryptocurrency ETFs approves Bitcoin and Ethereum, it would be a big problem, Bitwise Cio Matt Hougan told earlier Decryptpossibly Open the locks For other cryptocurrencies to follow on Wall Street.

The SEC Bitcoin ETF applications has been denying the SEC Bitcoin, with reference to fraud and providing market manipulation. Ultimately, following being loss For Grayscale, the SEC decided that the presence of a regulated futures market for Bitcoin and Ethereum used.

Although Coinbase has moved to offer Solana Futures that is regulated under the Commodity Futures Trading Commission, the SEC application has currently recognized no one to point out.

Instead, the submission quotes “US trading platforms” that are regulated under the New York Department of Financial Services. The state regulator needs companies with a so -called Bitlicense To “implement measures that have been designed to effectively detect [and] Avoid “fraud and market manipulation, but it is still unclear whether that is sufficient enough.

Published by Andrew Hayward