JPMorgan doubts the SEC will approve Spot Solana ETFs due to regulatory concerns

Wall Street giant JPMorgan Chase has expressed skepticism about the U.S. Securities and Exchange Commission’s (SEC) potential approval of the Solana ($SOL) spot exchange-traded fund (ETF) or the approval of one offering exposure to other altcoins.

JPMorgan managing director and global marketing strategist Nikolaos Panigirtzoglou noted that the SEC’s historical position is that most cryptocurrencies qualify as securities, and was quoted as saying that “the SEC’s decision to approve ETH ETFs is already a stretch, given the confusion on whether Ethereum should be classified as secure or not. “

Panigirtzoglou added that JPMorgan does not believe the regulator “will go further by approving Solana or other token ETFs, given that the SEC has a stronger (compared to Ethereum) view that tokens beyond Bitcoin and Ethereum should be classified as securities,” reports The Block. .

Panigirtzoglou suggested that a potential change in the regulatory landscape, in which U.S. policymakers classify most cryptocurrencies as non-securities, could pave the way for the SEC to approve a broader range of cryptocurrency ETFs.

The comments come shortly after the SEC approved applications by major securities exchanges to list spot exchange-traded funds (ETFs), clearing the way for these products to go on sale later this year.

The approval marks a significant change for the SEC, which has long been wary of cryptocurrencies and weighed whether to consider the second-largest cryptocurrency a commodity or security.

Although the exchange applications have been approved, individual ETF issuers including VanEck, ARK Investments and BlackRock still need a green light from the SEC on their registration statements before trading.

As reported, the potential approval of spot Ether ETFs has helped to significantly boost the cryptocurrency market and represents a significant step forward in cryptocurrency regulation, according to brokerage firm Bernstein, which suggested that Solana ($SOL) exchange-traded funds could follow suit.

Similar treatment could be applied to other cryptocurrencies, according to the brokerage firm’s latest research report, which comes ahead of the U.S. Securities and Exchange Commission’s (SEC) expected filing for the spot Ether ETF.

In the report, Bernstein analysts Gautam Chhugani and Mahika Sapra noted that they see the potential approval as a sign of a softening regulatory stance likely to be influenced by the upcoming November elections, adding that they believe that if Donal Trump is elected, “crypto could gain significant legislative importance and agency.” support” as SEC leadership changes.

More directly, the report highlighted the potential precedent set by the spot ETF, as it would mark the first time a blockchain asset other than Bitcoin has been classified as a commodity, potentially opening the door to similar treatment for Ethereum rivals, particularly Solana.

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