XRP News Today: SEC Delays Decision on Four Solana ETFs, Citing Regulatory Concerns

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on four proposed Solana exchange-traded funds (ETFs), including filings from Bitwise, 21Shares, VanEck, and Canary. The announcement, made on May 19, indicates that the agency will “institute proceedings” to assess whether the ETF proposals meet regulatory standards. This procedural move allows the SEC to extend the review period and open a public comment window. The agency emphasized that the institution of proceedings “does not indicate that the Commission has reached any conclusions” on the filings. Instead, the SEC stated that it needs more time to examine the proposals under the requirements of the Securities Exchange Act, particularly provisions related to fraud prevention and investor protection.

Among the delayed filings is the Bitwise Solana (SOL) ETF, which was first submitted in January through Cboe’s BZX Exchange. Bitwise’s fund would hold SOL directly, with prices tracked against the CME CF Solana-Dollar Reference Rate. Similarly, 21Shares, known for its spot Bitcoin (BTC) and Ethereum (ETH) ETFs, filed its own Solana proposal earlier this year. Despite growing demand, no altcoin ETFs linked to Solana have been authorized in the U.S. to date. The SEC’s cautious approach to growing crypto-based investment products, particularly for assets other than Bitcoin and Ethereum, is reflected in these delays.

The SEC is assessing whether the proposals comply with Exchange Act Section 6(b)(5), which requires that listed products be made to “protect investors and the public interest” and “prevent fraudulent and manipulative acts and practices.” The delay also comes amid a wider regulatory bottleneck for digital asset ETFs. Several filings for additional cryptocurrency ETFs, including those for Dogecoin (DOGE) and XRP (XRP), are still being examined. The future remains uncertain, as investors may be left in limbo if the SEC’s request for public input causes the timeline to be further extended.