The U.S. Securities and Exchange Commission (SEC) appears to be moving towards approving new cryptocurrency exchange-traded funds (ETFs), indicating a potential change in its regulatory stance.
This is happening despite the fact that the nominee to replace Gary Gensler as SEC Chairman, chosen by former President Donald Trump, has not been formally confirmed.
On Thursday, the SEC announced that it is seeking public comments on Grayscale’s Solana and Litecoin ETF proposals, as stated in two new filings. Industry experts consider this a significant change in direction, as the regulator had previously not accepted applications for ETFs that track the spot price of Solana, one of the largest cryptocurrencies after Bitcoin and Ethereum. The SEC had also started seeking comments on another Litecoin ETF earlier this year.
“The fact that the applications were accepted into the review process shows that the SEC’s views have already changed,” said Teddy Fusaro, president of Bitwise, which also applied for the Solana ETF. “Just a few months ago, they were not reviewing them at all, and now they have officially accepted them into the process.”
Since Trump’s election victory, ETF issuers have been increasing their applications in anticipation of a more favorable regulatory environment. Although Trump’s nominee for SEC Chairman, Paul Atkins, has not yet been confirmed by Congress, his expected leadership has generated optimism among cryptocurrency advocates.
Some issuers have offered highly innovative ETFs, including products that track specific digital assets associated with Trump’s brand. Trump Media & Technology Group Corp. recently filed trademarks for six investment products, three of which are ETFs aligned with the president’s policy themes.
In addition to seeking public feedback on Grayscale’s altcoin ETF applications, the SEC is also requesting opinions on whether BlackRock’s iShares Bitcoin Trust ETF should be allowed to create and redeem in-kind.
While these developments indicate progress, they do not guarantee approval, and the review process could take several months. Furthermore, the SEC has not yet clarified whether specific crypto assets in existing ETF filings will be classified as securities. Current Solana ETF filings treat the coin as a commodity.
*This is not investment advice.
