Solana ETFs Could Skip CME Futures Requirement, Asserts SEC’s Peirce

Hester Peirce, a Commissioner at the U.S. Securities and Exchange Commission (SEC), has suggested the potential approval of Solana exchange-traded funds (ETFs) without the necessity of existing CME futures markets. This requirement has historically influenced previous crypto ETF approvals.

Peirce’s remarks came during an interview with Coinage on Wednesday, shedding light on potential shifts in regulatory stance towards digital asset investment products.

When asked about the idea that cryptocurrencies, particularly Solana, might not require existing CME Futures for ETF approval, she underscored the need to meticulously apply established regulatory frameworks and precedents, stressing the critical importance of evaluating each case based on its unique merits.

“We need to consider past precedents with ETPs (exchange-traded products) and demonstrate how they can meet approval criteria under our existing laws and regulations. It’s a case-by-case evaluation,” Peirce emphasized, encouraging stakeholders to draw insights from previous ETF approvals across diverse asset classes.

Notably, this stance implies that Solana’s ETF proposals might not encounter the extensive bureaucratic hurdles seen with Bitcoin and Ethereum ETFs, marking a potential departure from stringent requirements in previous approvals.

The Commissioner further acknowledged the complexities surrounding cryptocurrency ETF approvals, urging the SEC to apply existing laws to market products rather than attempting to reinvent the wheel.

Pierce’s remarks coincide with heightened interest in the approval of a SOL ETF within the crypto community. Recently, two firms, VanEck and Swiss firm 21Shares, filed applications for Solana ETFs, highlighting increasing institutional interest in the fifth-largest cryptocurrency by market capitalization.

Notably, while many anticipate an imminent approval, the crypto market is currently fixated on the upcoming US elections, which are expected to introduce uncertainty. In a recent post, Eric Balchunas, Senior ETF analyst at Bloomberg, underscored the potential impact of the upcoming U.S. presidential election on the approval timeline for Solana ETFs.

“The likelihood of a Solana ETF being approved in the next 12 months is closely tied to the likelihood of a change in POTUS, and it’s safe to say that both prospects are higher today than they were yesterday… although we’re not providing specific numbers yet. It’s still too early for that,” he commented.

Additionally, speculation within the community suggests that the election’s outcome, particularly regarding regulatory leadership at the SEC under Gary Gensler, could influence the approval process.

That said, as discussions around Solana ETFs continue to evolve, investors are increasingly optimistic about the potential impact of such a product on SOL’s price. In a recent report, GSR Markets, one of the leading market makers in the crypto sector, projected an expected appreciation of almost nine times SOL’s price upon approval.