VanEck Exec Points to Past Case as Blueprint for Solana ETF Approval
VanEck Executive Head of Digital Assets Research, Matthew Sigel, recently highlighted a 6-year-old closed case as a potential model for securing approval for a Solana exchange-traded fund (ETF). In a tweet on August 20, Sigel reiterated the belief that Solana should be categorized as a commodity, similar to bitcoin and ethereum, to pave the way for its own US-based ETF.
“This belief is informed by evolving legal perspectives, where courts and regulators have begun to recognize that certain crypto assets may function as securities in primary markets but behave more like commodities in secondary markets.”
Sigel referenced the My Big coin case, a now-closed legal battle from 2018, where the US Commodities Futures Trading Commission (CFTC) charged the founders of My Big coin with fraud. The defendants argued for the case's dismissal, asserting that the token was not a commodity since there were no futures contracts referencing it. However, the judge ruled that My Big coin fell under the definition of a commodity, similar to bitcoin, dismissing the defendants' argument.
The Role of the My Big coin Case in ETF Regulation
Sigel drew parallels between the My Big coin case and the potential classification of Solana as a commodity for ETF purposes. He stated, “This same logic could apply to digital assets like Solana, and could shape the future of ETF regulation.” Despite this optimistic viewpoint, other industry experts, like Bloomberg ETF analyst Eric Balchunas, expressed skepticism about the immediate approval of Solana ETFs.
“Solana ETFs have a snowball’s chance in hell of approval,” Balchunas remarked, following reports that Cboe withdrew 19b-4 filings for Solana ETFs from its website. Speculation arose that the SEC rejected the filings due to concerns over Solana's security classification.
Balchunas indicated that the outcome of the upcoming US election could play a pivotal role in the approval process for a Solana ETF. Despite the challenges, Sigel remained positive, highlighting that VanEck's S-1 filing for a Solana ETF was still active. He emphasized the distinction between exchange rule changes (19b-4) and issuer prospectuses (S-1), indicating that VanEck's prospectus remained in play for the ETF approval process.
The dynamic landscape of crypto asset regulation continues to evolve, with legal precedents like the My Big coin case shaping the industry's future trajectory. As stakeholders navigate the complexities of ETF approval for digital assets, the industry eagerly anticipates the outcome of ongoing regulatory developments.
