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SEC’s Lame Duck Status Clouds Approval of Solana ETF Applications Solana ETF Applications Face Uncertainty Amid SEC Leadership Transition The approval of Solana (SOL) ETF applications submitted by 21Shares and VanEck through the Chicago Board Options Exchange (CBOE) remains uncertain. According to Bloomberg ETF analyst Eric Balchunas, the U.S. Securities and Exchange Commission (SEC) is in a “lame duck” period, with more crypto-friendly leadership not expected until 2025. Balchunas shared his analysis on X (formerly Twitter), pointing out that even if the SEC considers approving the filings, lawsuits classifying Solana as a security could delay or derail the process.   Challenges Facing Solana ETF Approval 1. SEC’s Lame Duck Period Gary Gensler’s Resignation: The SEC Chair has announced his resignation effective January 20, 2025, leaving the agency in a transitional phase. New Leadership Impact: President-elect Trump’s administration is expected to appoint a more crypto-friendly chair, but that leadership shift may not occur in time to affect Solana ETF filings. 2. Legal Classification of Solana Several lawsuits currently classify Solana as a security, which could hinder ETF approval. Any progress on the filings may require these lawsuits to be resolved in favor of excluding Solana from securities classifications. 3. Broader SEC Stance on Crypto ETFs While the SEC has approved several Bitcoin ETFs recently, its stance on altcoin-based ETFs, including Solana, remains unclear.   Why the Solana ETF Matters 1. Expanding Access to Solana Investments Approval of a Solana ETF would allow institutional and retail investors to gain exposure to Solana without directly purchasing the cryptocurrency. This could boost Solana’s market adoption and enhance its position as a top-performing blockchain. 2. Potential Market Impact Previous approvals of crypto ETFs, particularly Bitcoin spot ETFs, have led to increased trading volumes and price surges for the underlying assets. A Solana ETF could similarly…

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Filed under: News - @ November 22, 2024 6:26 pm