As the cryptocurrency community looks forward to potential regulatory changes under the incoming Donald Trump administration, the US Securities and Exchange Commission (SEC) has taken a firm stance by reportedly rejecting two of the five filings for a spot Solana ETF.
This decision reflects the SEC’s ongoing approach to cryptocurrency regulation, characterized by a cautious and often restrictive posture over the past three years.
SEC Set To Reject Solana ETF Filings
According to Fox journalist Eleanor Terret, the SEC has notified at least two prospective issuers that their 19b4 filings for the Solana ETFs will be rejected. The consensus among insiders suggests that the SEC is unlikely to approve any new crypto ETFs under the current administration.
The specific issuers affected by this rejection have not been disclosed. Still, notable applicants for the Solana ETF include Bitwise, Canary Capital, 21Shares, VanEck, and Grayscale, which recently filed on Wednesday to convert its Solana Trust into a spot Solana ETF.
Terret noted that the SEC’s approach indicates it will not approve only select applications while denying others, further complicating the landscape for crypto fund approvals. However, the potential for change looms on the horizon.
Following the announcement that SEC Chair Gary Gensler will depart the agency on January 20, 2025, prospects for these investment funds may improve significantly.
President-elect Trump has indicated plans to nominate former SEC Commissioner Paul Atkins to succeed Gary Gensler, highlighting his commitment to a pro-crypto regulatory environment.
Shift Toward Pro-Crypto Regulations
Atkins, currently the CEO of Patomak Global Partners, is well-respected in Republican circles and has a wealth of experience in the financial sector. Trump’s endorsement of Atkins emphasizes a vision for “common sense regulations” that support innovation in capital markets, including digital assets.
In a recent Truth Social post, President-elect Donald Trump stated, “He believes in the promise of robust, innovative capital markets that are responsive to the needs of investors.”
This shift in leadership could pave the way for the approval of Solana ETF applications and similar filings for other cryptocurrencies, such as XRP, Litecoin, and Hedera.
These applications are already with the SEC, as asset managers seek to expand the crypto ETF landscape beyond the already approved Bitcoin and Ethereum ETFs, which received regulatory approval earlier this year.
In addition to the SEC chair nomination, attention is also turning to the Commodity Futures Trading Commission (CFTC) and who Trump will appoint to lead this agency, which will reportedly play a crucial role in shaping crypto regulation under the new administration.
Terret reported that several candidates are preparing to interview at Mar-a-Lago, including current Republican commissioners and former CFTC officials.
Names such as Jill Sommers, Brian Quintenz, and Josh Sterling have emerged as potential appointees, alongside Perianne Boring, founder of the Digital Chamber of Commerce.
At the time of writing, SOL is trading at $236, having undergone a 10% correction after reaching a new all-time high of $263 on November 23.
Featured image from DALL-E, chart from TradingView.com
