The U.S. Securities and Exchange Commission (SEC), led by outgoing Chairman Gary Gensler, is reportedly preparing to reject multiple applications for Solana spot ETFs, potentially deferring their approval to the incoming administration under President-elect Donald Trump. Fox Business journalist Eleanor Terrett revealed that at least two of the five potential issuers have been notified of the SEC’s potential rejection. Sources suggest the regulator is unwilling to approve any new cryptocurrency ETFs in the final months of the Biden administration. Bloomberg Intelligence analyst Eric Balchunas called Gensler’s stance a “parting gift” to the crypto industry. Another Bloomberg Intelligence analyst, James Seyffart, echoed that view, pointing to the SEC’s continued classification of Solana as a security or a securities offering as a significant hurdle. “If I were Gensler, I wouldn’t accept any of this. I would leave it to the next executive to sort out this mess,” he said. Despite regulatory uncertainty, institutional interest in Solana ETFs is growing, with major firms including Bitwise, VanEck, 21Shares, and Canary Capital filing applications. Solana’s appeal stems from its high-speed and scalable blockchain, which should lead to significant user activity and ecosystem growth through 2024. Eliezer Ndinga, 21.co’s chief strategy officer, highlighted Solana’s growing institutional momentum: “Solana is sending a message that the smart money is coming this way.” SOL is up 160% year-to-date, further solidifying its position as a rising star in the crypto space. Looking ahead, analysts are predicting a significant shift in the SEC’s approach to crypto regulation under President-elect Trump. New SEC Chairman Paul Atkins, a known advocate of digital asset innovation, is expected to bring a more cohesive stance to the agency. Related News: Binance Labs May Have Sold These Two Tokens After Altcoin Market Rise Trump’s pro-crypto regulatory team, which includes Treasury Secretary nominee Scott Bessent and Commerce Secretary nominee Howard Lutnick, points to a potential green light for crypto-focused financial products. Analysts like Seyffart believe that Solana ETF approval is a matter of “when, not if” under the new administration. Gary Gensler’s term as SEC Chairman ends on Jan. 20, and crypto market participants will be closely watching how the new administration handles the Solana ETF applications. Bloomberg’s Balchunas expects issuers to refile under Paul Atkins’ leadership if Gensler blocks approvals before he leaves office. *This is not investment advice. Continue Reading: Will Gary Gensler Make His Final Stake in the Cryptocurrency Market Before He Steps Down as SEC Chairman? Here's the Latest Information
