Solana ETF Hopes Take A Big Damper: CME Denies ‘Any Plans’

Share This Post

The Chicago Mercantile Exchange (CME) has no plans to list Solana futures, according to information leaked by a source familiar to the situation, via the Twitter account db (@tier10k). This news deals a significant blow to the anticipation around a potential Solana Exchange Traded Fund (ETF) in the US markets.

What This Means For The Spot Solana ETF Hopes

Scott Johnsson, a seasoned finance lawyer at Van Buren Capital, commented on the development, emphasizing the regulatory hurdles that Solana faces. He clarified that while a Solana ETF does not require the CME specifically to act as the designated contract market (DCM), any potential market would require a robust framework with a Custody and Security Services Agreement (CSSA) and sufficient liquidity. “ETF doesn’t need to be CME as the DCM that is listing (just one with a CSSA and liquid),” Johnsson noted.

However, the broader context of ongoing enforcement actions against prominent crypto exchanges like Coinbase and Binance by the US Securities and Exchange Commission (SEC) casts a shadow over the feasibility of such an ETF. “No one is going to self-certify SOL as commodity futures so long as Coinbase/Binance enforcements are ongoing. Even if CME (or other DCM) self-certified, the current SEC could and would block,” Johnsson elaborated.

Adding to the complexity, Johnsson remarked on the need for a significant change in the SEC administration or its policies before Solana could realistically progress towards an ETF. “SOL really needs a change in admin to have a shot in the foreseeable future. Or the current SEC reversal goes way further than anyone is expecting. The former seems more likely,” he expressed.

The nuances of the issue led to some confusion among the crypto community. X user Jonny Moe pointed out the focus of the discussion, prompting Johnsson to clarify, “I know, but the point is everyone is focused on this [a futures ETF listed on the CME] as a prerequisite to an [spot] ETF.”

James Seyffart, a Bloomberg ETF analyst, concurred with Johnsson’s views regarding the SEC’s stance, adding a historical perspective: “This SEC isn’t gonna let anyone register Solana futures with the CFTC as ‘Commodities Futures’. They made that mistake with Bitcoin and Ethereum. I seriously doubt this admin does that again. They would very likely push back.”

The SEC has notably named Solana in lawsuits against Binance and Coinbase, categorizing it as a security, which further complicates the asset’s regulatory landscape and its prospects for futures and spot ETF listings in the US.

The leak from the CME dampens any immediate hope for Solana’s inclusion in futures markets and significantly dims the prospects for a spot ETF in the near term. The SOL price remained relatively stable in response to the news, closely aligning with the prevailing market trend. At press time, SOL traded at $163.83.

Solana price

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Dogecoin Price Prediction 2025, 2026 – 2030: Will DOGE Price Hit $1?

The post Dogecoin Price Prediction 2025, 2026 – 2030: Will DOGE Price Hit $1 appeared first on Coinpedia Fintech News Story Highlights The price of Dogecoin today is Dogecoin price may reach a

Cardano Price Prediction 2025, 2026 – 2030: Will ADA Price Hit $2?

The post Cardano Price Prediction 2025, 2026 – 2030: Will ADA Price Hit $2 appeared first on Coinpedia Fintech News Story Highlights The live price of the Cardano token is ADA coin price could

Solana Price Prediction 2025, 2026 – 2030: SOL Price Targets $500 Next?

The post Solana Price Prediction 2025, 2026 – 2030: SOL Price Targets $500 Next appeared first on Coinpedia Fintech News Story Highlights Solana Price Today is Solana price could reach a

Crypto.com Expands UAE Footprint With License to Offer Derivatives

Cryptocom has received a limited license from Dubai’s Virtual Assets Regulatory Authority (VARA) to offer derivative products such as futures and perpetual swaps, marking a major step forward

Binance Coin Price Prediction 2025, 2026 – 2030: Will BNB Hit $1000?

The post Binance Coin Price Prediction 2025, 2026 – 2030: Will BNB Hit $1000 appeared first on Coinpedia Fintech News Story Highlights Binance Coin Price Today is The BNB price prediction

Vermont withdraws action against Coinbase, awaits SEC’s regulatory clarity

Vermont has officially withdrawn its legal action against Coinbase, which accused the crypto exchange of offering unregistered securities through its staking program In a court filing on March 13,