The SEC rejected Cboe’s 19b-4 filings for Solana ETFs: Source

theblock.co 20/08/2024 - 08:46 AM

SEC Rejects Cboe BZX’s Spot Solana ETF Filings

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 situation. Consequently, these filings were withdrawn from the Cboe website.

This decision followed discussions between the SEC and issuers, who voiced concerns that Solana should be considered as a security. This perspective aligns with assertions presented by the SEC in multiple court cases.

Understanding the 19b-4 Filings

The 19b-4 filings are submitted by exchanges, such as Cboe, on behalf of issuers. Once placed in the Federal Register, these filings initiate the SEC’s approval process. Conversely, the S-1 registration statement is filed by issuers and does not trigger any deadlines for SEC review.

Due to the SEC’s rejection, the 19b-4 filings were never posted to the Federal Register, thus not commencing the process for potential approval or denial.

Current Situations of Solana ETFs

Active Issuers

Currently, two issuers are pursuing a Solana ETF: 21Shares and VanEck, both of which are still listed in the SEC’s filing system EDGAR. Matthew Sigel, Head of Research at VanEck, stated that their application is still active.

Although the rejection of the 19b-4 filings presents a challenge, there is potential for these applications to be refiled or amended with stronger arguments that Solana does not constitute a security.

Audrey Belloff, head of communications at 21Shares, remarked, “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 around the world.”

The SEC has declined to provide further comment, and VanEck and Cboe have not responded to requests for additional information.

This article was updated to clarify that 21Shares’ ETF filing is still accessible on EDGAR.




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