SEC forces Solana ETF proposals to withdraw because SOL is still a security

Pressure from the SEC over the alleged securities is the reason why Wall Street giants have had to withdraw their applications to establish a Solana spot ETF.

According to a source from The Block, the US stock exchange Cboe BZX has withdrawn the Solana spot ETF registration proposals from VanEck and 21Shares, which were announced in early July.
The reason for the above move comes from the US Securities and Exchange Commission (SEC), a source from The Block confirmed that the SEC had met with Cboe, mentioning that SOL has not yet escaped the "securities label".

After that, VanEck withdrew the Solana ETF registration dossier before the deadline to submit it to the US National Register - the countdown to the SEC's decision. However, at the time of writing, the application forms for VanEck and 21Shares can still be found on the SEC's information portal.
As previously reported, Solana is one of several cryptocurrencies that the SEC has flagged as a suspected security in its lawsuit against Binance and Coinbase in June 2023.

However, by the end of July, the SEC had notified Binance of its intention to change the securities charges against these coins, but it is still unclear what the new stance of this regulatory agency is.

After Bitcoin and Ethereum, Solana is the next cryptocurrency that both large organizations and individual investors expect to have an ETF. However, in addition to the unresolved legal issues, Solana still does not have an ETF futures product, a necessary condition for going to a spot ETF, similar to what happened with BTC ETFs and ETH ETFs in the past.
The SEC recently settled its lawsuit against Ripple and XRP, forcing Ripple to pay a $125 million fine for past misrepresentations, but it cannot label XRP as a security in all cases.

SOL prices were not significantly affected by the news that the SEC asked the Solana Spot ETF applicants to withdraw their applications.