SEC has expressed concerns regarding Solana’s (SOL) status as a security during discussions with potential ETF issuers. This was reported by The Block, citing a source.
Following discussions with the regulator, CBOE agreed not to register 19b-4 forms in the Federal Register. This would have initiated the approval process for products, putting time pressure on the SEC to make a decision, noted the source.
Over the weekend, users noticed that the 19b-4 applications submitted by the exchange on behalf of issuers had disappeared from the trading platform’s website.
Forms 19b-4 for VanEck and 21Shares Solana ETFs appear to have been removed from the CBOE website.
Documents SR-CboeBZX-2024-066 & SR-CboeBZX-2024-067 aren’t accessible anymore via direct link, and are no longer visible in BZX Pending Rule Changes.
Another interesting thing is… pic.twitter.com/t81kVGJ3uH
— Summers (@SummersThings) August 16, 2024
The documents are also absent from the Federal Register.
To initiate ETF trading, the regulator must register an S-1 document. However, there are no deadlines for the SEC to review this form.
The corresponding proposal from VanEck still appears in the Commission’s filing system, while the application from 21Shares does not.
According to The Block’s source, the SEC’s actions were not unexpected for issuers, as Solana is mentioned as a potential security in numerous lawsuits by the agency.
Updated 19b-4 forms with more convincing arguments regarding Solana’s status are expected to be submitted soon. This was indirectly confirmed by VanEck’s Head of Digital Asset Research, Matthew Sigel, who commented on the removal of the application from the CBOE website.
Some have noticed that the 19b-4 for the VanEck Solana ETF has been removed from the CBOE website.
Remember that Exchanges like Nasdaq & CBOE file rule changes (19b-4) to list new ETFs. Issuers like VanEck are responsible for the prospectus (S-1). Ours remains in play. https://t.co/9rbSHciSdy— matthew sigel, recovering CFA (@matthew_sigel) August 19, 2024
“Remember that exchanges like Nasdaq and CBOE file rule changes (19b-4) to list new ETFs. Issuers like VanEck are responsible for the prospectus (S-1). Ours remains in play,” wrote Sigel.
Back in July, he linked the chances of Solana-based ETFs being approved to the results of the U.S. autumn elections.