that U.S. Securities and Exchange Commission Cboe BZX’s 19b-4 application denied for two potential spots. Solana brush
+2.92%
According to a source familiar with the situation, the ETF was pulled from the Cboe website as a result.
This follows conversations between the SEC and the issuer about concerns that Solana should be considered a security, as The Block previously reported, citing other sources. This view is consistent with what the SEC has argued in court filings in several cases.
The 19b-4 report is filed by the exchange (in this case, Cboe) on behalf of the issuer. Registration with the Federal Register initiates the SEC approval process. The other important form, the S-1 registration statement, is filed by the issuer and has no deadline.
However, since the SEC rejected Form 19b-4, it has not been registered with the Federal Register and no proceedings for approval or rejection have been initiated.
Solana ETF Faces SEC Resistance
There are currently two issuers competing for the Solana ETF: 21Shares and VanEck. 21Shares appears to have backed out of its S-1 form, as it no longer appears in searches on the SEC’s filing system, EDGAR. VanEck’s S-1 form remains intact, and Matthew Sigel, director of research, says it is still valid.
While the 19b-4 rejection is a setback, it may be possible for Solana to refile or amend its argument that it is not a security in the near future with stronger language.
“We cannot comment on regulatory proceedings at this time. We are committed to expanding investor access to cryptocurrencies in the U.S. market and globally,” said Audrey Beloff, 21Shares’ head of communications.
VanEck, Cboe and the SEC did not immediately respond to requests for comment.
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