SEC Potentially Rejects Solana's ETF Submission Due To Securities Status

Solana crypto assets. (Photo; Doc. CoinMarketCap)

JAKARTA - The United States Securities and Exchange Commission (SEC) has again caused a crypto market earthquake. The SEC has indicated rejection of at least two requests for Solana-based Exchange-Trad (ETF) listing. This news further strengthens the signal that US regulators will be more cautious in approving crypto asset-based investment products, at least during the current administration.

This SEC decision is of course disappointing for crypto asset industry players who have had high hopes for the Solana ETF. Several well-known asset managers such as Grayscale Investments, VanEck, 21Shares, Bitwise, and Canary Capital have raced to apply to launch Solana-based investment products.

Grayscale, for example, recently submitted a request to convert its Solana Trust, which manages $134.2 million worth of assets (approximately IDR 2.15 trillion), to the Solana spot ETF.

This demand further shows Solana's great potential, which has been known as a fast and efficient blockchain. However, the SEC still shows concern about Solana's legal status. One of the main issues is Solana's potential classification as a securities, which the SEC says could affect the ETF approval process.

In August, the SEC also rejected two Solana spot ETF submissions from Cboe BZX for the same reason, namely Solana's legal status uncertainty. The failure to obtain this approval makes asset managers even more wary, given the increasing number of crypto-based ETF applications that continue to flow.

Meanwhile, the crypto market continues to look forward to further news regarding regulations that may affect the launch of other ETF products. Currently, only Bitcoin and Ethereum have ETF products approved by the SEC.