The U.S. Securities and Exchange Commission (SEC) has reportedly notified at least two of the five applicants seeking approval for Solana (SOL) spot exchange-traded funds (ETFs) that their filings will be rejected.
This development, reported by Fox Business journalist Eleanor Terrett on X, highlights the SEC’s reluctance to greenlight cryptocurrency ETFs under the current administration.
Terrett noted, “The consensus here, I’m told, is that the SEC won’t entertain any new crypto ETFs under the current administration.” This announcement has drawn attention from the broader cryptocurrency community, particularly advocates of XRP, as several firms have recently filed applications for XRP ETFs.
SCOOP: I’ve confirmed that the @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs.
The consensus here, I’m told, is that the SEC won’t entertain any new #crypto ETFs under the current administration.
— Eleanor Terrett (@EleanorTerrett) December 6, 2024
SEC’s Stance on Cryptocurrency ETFs
The SEC’s stringent approach to cryptocurrency ETFs has long been a point of contention. After losing a lawsuit to Grayscale about ETF approval, the regulator finally approved Bitcoin ETFs in January, and Ethereum ETFs followed some months later. Since then, many companies have filed ETFs for digital assets like Solana, XRP, and more.
One commenter speculated that since the SEC only notified two of the five applicants, it might still approve at least one of the other three.
Terrett clarified the situation, stating, “The SEC won’t approve just one or a couple and not the others. Remember the bitcoin ETFs? Eleven launched on the same day.” This statement suggests that the regulator has no plans to approve any ETFs under the current administration.
XRP ETF Applications in Limbo
The agency’s perceived hostility toward cryptocurrencies has been a source of frustration for market participants. SEC Chair Gary Gensler also seems to be doing all he can to sabotage the crypto market’s progress.
He has appointed individuals critical of the crypto industry to influential positions within the agency and is now delaying ETF approvals.
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Transition in SEC Leadership
Gensler recently announced his intention to step down as SEC Chair effective January 20, 2025. This decision coincides with the inauguration of President-elect Donald Trump, who has nominated former SEC Commissioner Paul Atkins as Gensler’s successor. Atkins, known for his market-friendly stance, is widely viewed as a potential advocate for more lenient cryptocurrency regulations.
One user expressed some optimism, stating, “That’s fine. We can wait 6 weeks,” reflecting the general sentiment that ETF approval may become more attainable under new leadership.
While the SEC’s rejection of SOL spot ETF filings may signal a temporary roadblock for cryptocurrency ETFs, the impending change in leadership has reignited hope within the crypto community.
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