The US Securities and Exchange Commission (SEC) has made headlines once again in the world of cryptocurrency. According to Bloomberg ETF senior analyst Eric Balchunas, the SEC is set to reject two spot Solana (SOL) exchange-traded fund (ETF) applications. This news comes as Chair Gary Gensler prepares to step down from his position, leaving behind what some are calling his “parting gift” to the crypto industry.
Fox News correspondent Eleanor Terrett reported that sources at two Solana ETF issuers have confirmed that the SEC will not be approving any new crypto-related ETFs under Gensler’s leadership. With Gensler’s term set to end on January 20, 2025, there is anticipation for a shift in regulatory approach once Paul Atkins takes over as SEC chair. President-elect Donald Trump has already confirmed Atkins for the role, leading to expectations that the Solana ETF applications will be revisited under new leadership.
Former VanEck digital asset strategy director Gabor Gurbacs weighed in on the news, expressing his belief that Gensler’s departure is imminent. Balchunas concurred, stating that the rejection of the Solana ETF applications could be seen as Gensler’s parting gift to the industry.
However, Bloomberg ETF analyst James Seyffart offered a different perspective, noting that Gensler’s hands may have been tied on the Solana ETF issue. With ongoing lawsuits that classify SOL as a security, allowing SOL-related exchange-traded products could be seen as contradictory. Seyffart believes that the new SEC administration will need to address these lawsuits before moving forward with any new ETF approvals.
In addition to the Solana ETF rejections, Seyffart highlighted the SEC’s recent involvement in the Binance case as another parting gift from Gensler. Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC for filing an extensive document in the Binance lawsuit, arguing that the regulator should have paused crypto litigation with new leadership on the horizon.
As the crypto industry continues to navigate regulatory challenges, the timeline for Solana ETF approvals remains uncertain. While Seyffart initially projected a potential approval by August 2025, he acknowledges that this deadline may be subject to delays. With a new SEC chair on the horizon, the crypto community will be watching closely to see how regulatory decisions unfold in the coming months.