According to The Block’s report, the U.S. Securities and Exchange Commission (SEC) rejected two 19b-4 applications for spot Solana ETFs submitted by Cboe BZX on behalf of issuers. Following the rejection, the applications were withdrawn from Cboe’s website. Sources indicate that the SEC’s concerns about classifying Solana (SOL) as a security are the main reason behind this decision. The SEC had previously expressed this view in court documents.
Tension Between SEC and Issuers
After the SEC’s rejection, the applications did not reach the Federal Register, thus the approval or rejection process did not commence. 19b-4 applications are submitted by the exchange on behalf of issuers and initiate the SEC’s approval process once added to the Federal Register.
The other important form, the S-1 registration statement, is prepared by issuers but does not impose any time limitations.
Conflict Over Spot Solana ETFs
Currently, 21Shares and VanEck are two companies fighting for SEC approval of their spot Solana ETFs. The disappearance of 21Shares’ S-1 form from the SEC’s EDGAR system indicates the company has stepped back. On the other hand, VanEck’s S-1 form remains active, and VanEck’s head of research, Matthew Sigel, stated that their application is still valid.
The rejection of 19b-4 applications may have posed a hurdle for spot ETF applicants, but the forms can be resubmitted in the future or updated with stronger arguments that Solana is not a security.
21Shares’ head of communications, Audrey Belloff, stated, “We cannot comment on the regulatory process at this time. We remain committed to expanding investor access to cryptocurrencies in the U.S. market and globally,” providing a veiled explanation of the situation.
