SEC Shifts Stance on Solana ETF—Approval Finally in Sight?

• The SEC acknowledged NYSE Arca’s filing to list and trade the Grayscale Solana ETF.
• The agency opened a 21-day public comment period before making a decision on the proposal.
• The SEC had previously declined similar Solana ETF filings, but this acknowledgment signals a potential shift in its approach.

The U.S. Securities and Exchange Commission (SEC) has taken a step forward on the Grayscale Solana Trust proposal. The agency acknowledged a filing from NYSE Arca, which seeks to list and trade the trust as an exchange-traded product. The SEC has opened a 21-day public comment period before making a final decision on the proposal.

SEC Reviews Grayscale Solana ETF Proposal

The SEC’s decision to acknowledge the filing marks a shift in its approach to Solana-based investment products. Previously, the agency had declined similar filings, but the latest acknowledgment signals a change in direction. The SEC will now determine whether to approve, reject, or further review the proposal based on the feedback received.

Bloomberg ETF analysts have highlighted the significance of this development. James Seyffart pointed out that the SEC had previously avoided acknowledging Solana-based filings. Eric Balchunas also noted that this is the first time an ETF tracking a cryptocurrency previously labeled as a security has been acknowledged.

Market analysts believe the regulatory shift reflects changes in SEC leadership. Six weeks ago, the SEC reportedly instructed CBOE to withdraw its Solana ETF filing. The latest move suggests a new regulatory stance under the current administration.

SEC Also Considers Grayscale’s Litecoin Trust

Alongside the Solana ETF proposal, the SEC has also requested public comments on Grayscale’s Litecoin Trust. The agency’s review process follows the same 19b-4 procedure required for listing and trading exchange-traded products. Public input will play a key role in the final decision regarding the Litecoin-based ETF.

Market observers view the SEC’s acknowledgment of multiple crypto-based ETFs as an important regulatory development. The approval of a Litecoin ETF could signal greater acceptance of cryptocurrency investment products. Industry experts suggest that if the SEC approves the Solana or Litecoin ETFs, it may open the door for other similar products.

The ongoing discussions indicate the SEC’s increasing focus on crypto asset regulation. The agency aims to clarify which digital assets qualify as securities. This could impact the approval process for future cryptocurrency-based investment products.

SEC Forms Task Force to Regulate Crypto Assets

The SEC recently formed a crypto task force to reassess its approach to digital asset regulation. Acting SEC Chair Mark Uyeda appointed Commissioner Hester Peirce to lead the initiative. The task force will identify which cryptocurrencies should be classified as securities.

Regulatory experts believe this initiative could clarify the evolving crypto market. By establishing clearer guidelines, the SEC aims to streamline the registration process for firms. The task force’s decisions could influence the future approval of crypto exchange-traded products.

With a new administration in office, market participants anticipate regulatory changes. Some analysts predict that a spot Solana ETF could receive approval by the end of the year. The SEC’s latest actions indicate a shift in its regulatory stance on digital assets.