The U.S. Securities and Exchange Commission (SEC) decided not to move forward with the 19b-4 form for approving a Solana exchange-traded fund (ETF), following discussions about the potential security status of Solana (SOL). 

This development comes amid ongoing debate over the regulatory classification of the cryptocurrency, according to a recent report from The Block.

Background on Solana ETF Proposals

In June, New York-based investment firm VanEck made headlines by filing a proposal for a spot Solana ETF in the U.S. This move marked the first attempt by a major asset manager to introduce a Solana-based fund in the region. The ETF aimed to offer direct exposure to SOL, with daily valuations based on prices from selected trading platforms.

Likewise, 21Shares filed a similar SEC proposal a day later. Despite the enthusiasm from these issuers, industry experts, including senior Bloomberg ETF analyst James Seyffart, suggested that approval might not be expected until 2025. 

Recent Developments

During the past weekend, it became evident that the 19b-4 filings, necessary for exchanges to list ETFs, were no longer visible on the Cboe BZX website. This form is crucial for the approval process of ETFs, as it involves exchanges proposing rule changes to list new products.

The S-1 registration statements for the VanEck and 21Shares Solana ETFs also reflect this uncertainty. VanEck’s S-1 filing remains accessible on the SEC’s EDGAR system, while the filing for 21Shares appears to have been removed from search results, though the direct link still functions.

The SEC’s Stance on Solana

The SEC previously referred to Solana as a security in various court filings. This classification issue has been a significant hurdle for Solana ETFs, contributing to the current confusion over the status of the filings.

It remains unclear whether the SEC rejected the filings or if the asset managers decided to withdraw them. Notably, the SEC has not provided any updates on the status of these filings since their submission.

VanEck’s Continued Commitment

Despite the regulatory uncertainty, VanEck’s plans for a Solana ETF remain active. Matthew Sigel, VanEck’s head of digital assets research, noted that while exchanges like Nasdaq and Cboe handle rule change filings, the responsibility for the prospectus, or S-1, falls to issuers. According to Sigel, VanEck’s S-1 filing is still in play.

VanEck views Solana as a commodity, similar to Bitcoin and Ethereum, which aligns with evolving legal perspectives. These perspectives suggest that while some crypto assets may be considered securities in primary markets, they could function as commodities in secondary markets.