SEC rejecting Solana ETFs is Gensler’s ‘parting gift’ to crypto industry – Bloomberg analyst News ▸ US ▸ Binance ▸ Solana ▸ Regulation
SEC rejecting Solana ETFs is Gensler’s ‘parting gift’ to crypto industry – Bloomberg analyst
In addition to allegedly refusing any new crypto-related ETF filings, Gensler's administration filed a brief on the Binance lawsuit.
2 min read
Updated: Dec. 6, 2024 at 9:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The US Securities and Exchange Commission (SEC) will reportedly reject two spot Solana (SOL) exchange-traded funds (ETF) applications, according to Bloomberg ETF senior analyst Eric Balchunas.
Balchunas said the rejections were Chair Gary Gensler’s “parting gift” to the crypto industry.
Fox News reported Eleanor Terrett revealed sources at two Solana ETF issuers told her the SEC will not approve any new crypto-related ETF under Gensler. He is slated to step down on Jan. 20, 2025.
Balchunas expects the issuers to file for the Solana ETFs again once Paul Atkins begins his term as SEC chair. President-elect Donald Trump confirmed Atkins for the role on Nov. 27.
In response to the news, former VanEck digital asset strategy director Gabor Gurbacs commented that Gensler “will take a hike soon,” and Balchunas replied:
“This was his parting gift I guess.”
However, Balchunas’ fellow Bloomberg ETF analyst James Seyffart argued that Gensler had no choice on the Solana ETF matter, as it would be “disingenuous” to allow SOL-related exchange-traded products while the regulator claims the crypto is a security in multiple lawsuits.
As a result, the new SEC administration will be responsible for sorting out the crypto lawsuits where SOL is considered a security. Until then, Seyffart sees applications as “dead in the water” until the watchdog decides on a new course of action.
This pushes back the Solana ETF approval timeline, which Seyffart initially projected to conclude in August 2025. Nevertheless, he added that this was the earliest of the deadlines, and he expected it would be pushed back.
Two gifts
Seyffart also highlighted that the SEC’s recent brief on the Binance case is the real parting gift, which he argued was an unnecessary move for the regulator.
Ripple’s chief legal officer, Stuart Alderoty, recently shared that the regulator filed an 81-page document urging the court not to dismiss the Binance lawsuit that accuses the exchange of offering 11 tokens as investment contracts.
According to Alderoty:
“Instead of standing down and pausing crypto litigation with new leadership just weeks away, Gensler’s SEC filed an 81-page brief in the Binance case yesterday, recycling the same failed arguments — including the absurd (and unsupported) claim that crypto has no inherent value.”
Mentioned in this article
Solana 
VanEck 
Binance 
James Seyffart 
Eric Balchunas 
Gary Gensler 
Gabor Guracs 
Paul Atkins 
Donald Trump Author 
Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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In this article
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
VanEck
VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
James Seyffart is a well-regarded analyst at Bloomberg Intelligence, specializing in Exchange-Traded Funds (ETFs) and the broader fund industry.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.
Gabor Guracs is the Founder at PointsVille and Strategy Advisor at VanEck.
Paul Atkins is a prominent lobbyist, business leader, and former government official with extensive experience in financial regulation.
Donald John Trump was born on June 14, 1946, in Queens, New York City.