The US Securities and Exchange Commission (SEC) is set to reject two applications for Solana (SOL) exchange-traded funds (ETFs), according to Bloomberg ETF analyst Eric Balchunas.
Gensler’s “Parting Gift” to the Crypto Industry
Balchunas described these rejections as SEC Chair Gary Gensler’s “parting gift” to the cryptocurrency sector. Sources from two Solana ETF issuers told Fox News’ Eleanor Terrett that no new crypto-related ETFs would be approved under Gensler’s leadership, which ends on January 20, 2025.
Refiling Likely After Gensler’s Departure
Once Gensler’s successor, Paul Atkins, takes office, Balchunas expects the Solana ETF issuers to refile their applications. President-elect Donald Trump confirmed Atkins as SEC chair on November 27.
Criticism and Response from Industry Figures
Former VanEck digital asset strategy director Gabor Gurbacs reacted to the news by stating that Gensler would soon leave, prompting a comment from Balchunas: “This was his parting gift, I guess.”
However, James Seyffart, another Bloomberg ETF analyst, argued that Gensler had little choice but to reject the applications. Seyffart pointed out that approving SOL-related ETFs while the SEC considers Solana a security in ongoing lawsuits would be “disingenuous.” He believes the new SEC administration will need to address these legal issues before approving Solana ETFs.
Delayed Solana ETF Approval Timeline
Seyffart previously predicted that Solana ETF approvals would occur by August 2025. However, he now expects this timeline to be further delayed, as the SEC’s new leadership will determine the course of action on the Solana security lawsuits.
SEC’s Role in the Binance Case
Seyffart also mentioned that the SEC’s involvement in the Binance case represents Gensler’s actual “parting gift.” This refers to the SEC’s recent 81-page brief in the Binance lawsuit, urging the court to proceed with accusations that Binance offered 11 tokens as investment contracts. Ripple’s chief legal officer, Stuart Alderoty, criticized the SEC’s brief, calling it an unnecessary move as Gensler’s departure approaches
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