The U.S. Securities and Exchange Commission (SEC) has begun discussions with prospective Solana ETF issuers, expressing concerns about Solana’s potential classification as a security.
Those discussions occurred before Cboe BZX Exchange removed the related 19b-4 filings, according to a source familiar with the matter.
Following these discussions, the SEC and Cboe mutually agreed not to file Forms 19b-4 with the Federal Register, which would have initiated the formal approval process for the ETFs. This move effectively relieved pressure on the SEC to make an immediate decision on the potential Solana ETFs.
As observed over the weekend, 19b-4 filings, typically filed by exchanges on behalf of issuers, no longer appear on the Cboe website or in the Federal Register.
ETF approvals require both the approval of Forms 19b-4 and the effectiveness of S-1 registration statements. However, S-1 forms do not impose specific deadlines on the SEC to make a decision.
The S-1 registration statement for VanEck's Solana ETF is available via EDGAR, the SEC's filing system. While 21Shares' S-1 registration statement no longer appears in search results, the direct link to the document still works.
The SEC’s statement of this stance came as no surprise to issuers, the source said, given that the agency has previously characterized Solana as a security in multiple court filings. The potential for disruptions to those practices was also expected.
The source also suggested there could be new filings or amendments to 19b-4s in the future that aim to present a stronger argument that Solana does not constitute a security.
“We cannot comment on the regulatory process at this time. We are committed to expanding access to cryptocurrencies for investors in the U.S. market and globally,” said Audrey Belloff, 21Shares’ communications manager.
*This is not investment advice.