According to reports, the SEC intends to reject applications for spot Solana ETFs during the present administration. This news affects at least two of the five potential issuers. The decision signals that no new crypto ETFs would be approved until after the incoming Trump administration takes office.
In recent months, there has been a boom in spot cryptocurrency ETF applications. Grayscale, VanEck, 21Shares, Bitwise, and Canary Capital filed for Solana ETFs. WisdomTree and others have also applied for XRP ETFs. XRP ETF confidence surged following recent court rulings that determined XRP is not intrinsically a security. However, Solana's regulatory status remains unknown. The SEC has identified SOL as a security in cases against major exchanges.
Both XRP and SOL face issues in meeting SEC ETF approval standards. The lack of regulated futures markets for these assets presents a substantial challenge. The SEC previously used the link between spot and regulated futures markets to argue against market manipulation for Bitcoin and Ethereum ETFs.
Despite potential crypto-friendly policies under the new government, XRP and SOL ETFs may still face regulatory challenges.
