- Regulatory Hurdles and Political Climate
- Document Preparation and Submission
- The Road Ahead
In a recent development that has caused a stir in the cryptocurrency community, the US Securities and Exchange Commission (SEC) has begun discussions with 21Shares regarding the potential classification of Solana as a security.
Regulatory Hurdles and Political Climate
The SEC has made its stance on Solana clear in various lawsuits, including the one against Binance, where Solana was explicitly labeled as a security. These actions appear to be aimed at avoiding an unfavorable court ruling by excluding securities like Solana from the Binance case. SEC Chair Gary Gensler has specifically classified Solana as a security, and there is little expectation that this position will change under the current Biden administration.
Document Preparation and Submission
The application for the Solana Spot ETF was submitted in June, aiming to list on the Chicago Board Options Exchange (Cboe BZX) under the ticker symbol '21Shares Core Solana ETF.' The listing process requires the review of both the issuer’s S-1 form and the exchange’s 19b-4 form. However, due to SEC's concerns, the 19b-4 form has been withdrawn from the Federal Register, effectively delaying the SEC's decision on the Solana ETF.
The Road Ahead
The future of the Solana Spot ETF remains uncertain. Sources suggest that the 19b-4 form may be resubmitted with modifications, but 21Shares will likely face an uphill battle in convincing the SEC that Solana is not a security. The outcome of this regulatory struggle will have significant ramifications for the cryptocurrency industry, particularly for altcoins looking to gain mainstream recognition via ETFs.
The outcome of the discussions between the SEC and 21Shares regarding the classification of Solana as a security will have important implications for the entire cryptocurrency industry, particularly for projects seeking listing through ETFs.
