SEC Rejects Solana ETFs: The Final Blow from Gensler?
- Mumu
- Dec 8, 2024
- 3 min read
TL;DR: The SEC rejected Solana ETF applications, marking a final push against crypto under Gensler’s watch. With Gensler’s exit in January and pro-crypto leadership on the horizon, optimism grows for ETF approvals in 2025. Solana’s price took a hit, but its future—and that of crypto ETFs—remains promising. 🎢
The U.S. Securities and Exchange Commission (SEC) has dealt a blow to Solana’s budding ambitions as at least two SOL spot ETF applications were rejected on Sunday. The decision marks another chapter in the long saga of regulatory pushback against crypto innovation under the current administration.
This rejection affects applications filed by major players like VanEck, 21Shares, Canary, and Bitwise, all of whom have submitted 19b-4 filings for Solana spot ETFs. While these firms hoped for a breakthrough, sources indicate that any progress on ETF approvals is highly unlikely during the remaining tenure of SEC Chairman Gary Gensler.
Gensler’s Swan Song?
The clock is ticking on Gensler’s reign at the SEC, as he is expected to leave office on January 20, 2025—coinciding with Donald Trump’s inauguration. Rumors swirl that Paul Atkins, a known crypto advocate, will take over the SEC’s reins, sparking optimism across the crypto space.
Under the new administration, the approval of spot ETFs for Solana, XRP, and other tokens may shift from “if” to “when”. This could be a game-changer for crypto ETFs and the industry at large. But until then, Gensler seems intent on blocking progress, using his final days in office to cement his legacy as crypto’s greatest antagonist.
Ripple Effects on Solana
The rejection has left its mark on Solana’s price action, with the token underperforming in recent days. Despite a strong November for the ecosystem—memecoins and mid-cap Solana projects like DRIFT and RAY enjoyed solid gains—the ETF rejection has triggered a temporary damper.
Still, Solana enthusiasts remain optimistic. With its rapidly growing ecosystem and memecoin dominance, Solana has established itself as a top-tier blockchain. The rejection may only be a delay, not a derailment, for the project’s long-term trajectory.
The Pipeline for Crypto ETFs
The rejection of Solana ETFs isn’t the end of the story. The SEC has a crowded ETF pipeline, including:
XRP spot ETFs
LTC spot ETFs
HBAR spot ETFs
Basket ETFs featuring a mix of top cryptos
The appetite for crypto ETFs remains robust, and with a more favorable regulatory regime expected in 2025, the approval landscape could change dramatically.
Want to Bet on Solana ETF Approval?
For the true degens looking to speculate on regulatory moves, Polymarket has an active market on Solana ETF approval odds. Current probabilities sit at 56% for approval by July 31, 2025.
Whether it’s optimism over a post-Gensler era or a belief in Solana’s growing clout, the market sentiment suggests a better future for crypto ETFs.
The rejection of Solana spot ETFs is a setback, but not a death knell. With Trump returning to office and Paul Atkins likely to steer the SEC, a regulatory pivot is imminent. Solana’s current struggles could be a blip in the grander scheme, as crypto ETFs stand on the cusp of mainstream acceptance.
As the crypto world waits for the inevitable ETF green light, the battle between innovation and regulation rages on. One thing is clear: the memes may pump Solana’s future just as much as ETFs ever could.
