The U.S. Securities and Exchange Commission (SEC) has rejected Cboe BZX’s 19b-4 filings for two proposed spot Solana ETFs, according to a source familiar with the matter. The rejection led to the filings being removed from the Cboe website.
The SEC’s decision came after discussions with the issuers, focusing on concerns that Solana should be classified as a security. This aligns with the SEC’s stance in various court cases.
The 19b-4 forms are typically filed by exchanges, such as Cboe, on behalf of issuers. These filings are crucial because, if accepted and placed in the Federal Register, they initiate the SEC’s approval process. In contrast, the S-1 registration statement, filed directly by issuers, does not trigger any specific deadlines.
However, due to the SEC’s rejection of the 19b-4 forms, they never entered the Federal Register, effectively halting the process before it could begin.
Two companies, 21Shares and VanEck, are currently pursuing Solana ETFs. It appears that 21Shares has taken a step back, as their S-1 form is no longer visible in the SEC’s EDGAR database. Meanwhile, VanEck’s S-1 form remains active, with the company’s head of research, Matthew Sigel, confirming that it’s still under consideration.
Despite this setback, there is potential for the 19b-4 forms to be refiled or amended with stronger arguments that Solana is not a security. “We are unable to comment on the regulatory process at this time. We remain committed to expanding investor access to cryptocurrencies in the U.S. market and globally,” said Audrey Belloff, head of communications at 21Shares.
