SEC Reviews Solana ETF Filings Amid Shift in Crypto Regulation

The Securities and Exchange Commission (SEC) is now reviewing multiple Solana (SOL) exchange-traded fund (ETF) applications, signaling a potential shift in how the regulatory body approaches these investment products.

On Tuesday, Canary Capital’s Solana Trust entered the growing list of proposed ETFs, joining similar filings from VanEck, 21Shares, and Bitwise. These filings seek public input, marking an important step toward bringing SOL investments to Wall Street.

This comes on the heels of Grayscale’s Solana ETF application, which the SEC recently acknowledged. Many see this as a significant moment, as it may set the tone for other similar applications moving forward.

"The SEC’s stance on a Solana ETF has shifted dramatically—from outright dismissing the idea to now formally reviewing proposals," said Chris Chung, founder of Solana swap platform Titan. This process initiates a 21-day review period in which the SEC can approve, reject, or extend its decision timeline.

Chung compared the moment to January 10, 2024, when the regulator approved a Bitcoin ETF, calling it a potentially historic day for Solana. Many industry observers anticipate that crypto ETFs beyond Bitcoin and Ethereum could gain approval this year, although exact timing remains uncertain.

Approval of a Solana ETF would position the blockchain as a strong contender for mainstream adoption, Chung added. However, Canary Capital CEO Steven McClurg has indicated that his firm’s approach to ETF filings is strategic, rather than driven solely by market trends.

"If we're already involved in these other ETFs, it makes sense to explore Solana as well and be prepared for potential regulatory shifts," McClurg noted. His firm has focused on tokens with clear utility, including Solana, XRP, Litecoin, and HBAR, while avoiding assets like Dogecoin.

The broader push for crypto ETFs beyond Bitcoin and Ethereum has gained momentum under the current U.S. administration. The SEC has also launched a dedicated crypto task force, led by Commissioner Hester Peirce.

Peirce has acknowledged the regulatory challenges ahead, drawing a parallel between crypto markets and modern technology's impact on everyday life. "Much like advances in transportation don’t remove all risks of travel, this path toward regulatory clarity comes with its own challenges," she noted in a statement, emphasizing the importance of striking a balance between innovation and investor protection.