The crypto industry anticipates significant regulatory shifts in the US following the 2024 presidential elections. President Donald Trump ran on a pro-crypto platform, promising to make the US the center of innovation for the industry. 

As a result, traders expect changes in the Securities and Exchange Commission. Thanks to these anticipated changes, analysts at VanEck have suggested that altcoin ETFs have a much higher chance of success. This is especially true for Solana ETFs. 

Trump’s Win Sets Stage for New Crypto ETFs

Solana ETFs are close to becoming a reality. On Friday, November 15, Matt Sigel, VanEck’s head of digital asset research, weighed in on its likelihood of success. According to Sigel, the new administration will likely break the regulatory deadlock at the SEC. 

“The Trump administration will be friendlier to encouraging innovation and capital formation in digital assets,” Sigel explained. He also unleashed scathing criticism of the SEC’s current leadership. Notably, he compared the SEC to a “deadbeat parent” who fails to meet its obligations. 

“The SEC was sued like a deadbeat parent that did not pay their child support would be sued in court,” Sigel exclaimed. These remarks about the Grayscale case against the SEC made the SEC approve an Ethereum ETF. 

SEC Will See Changes With New Administration

So far, the agency, under its current Chair, Gary Gensler, has been blocking altcoin ETFs. Despite approving Ethereum ETFs earlier this year, the agency does believe other assets qualify. Moreover, the agency has opted to “regulate by enforcement” and sue crypto firms for millions of dollars. 

“The SEC has broken from long-standing tradition by regulating through enforcement,” Sigel explained. This is why a change “could open significant opportunities for innovation,” he believes. The likely result for this is the approval of a Solana ETF by the end of 2025, the analyst believes. 

VanEck was the first investment firm that filed for its own Solana ETF. At the time, they explained that their case for regulatory approval hinges on a leadership change in the SEC. 

On the Flipside

Analysts believe the SEC would not allow a Solana ETF because there is no regulated futures market for the asset. 

Most other countries, including the European Union, have approved a wide range of crypto ETF products. 

Why This Matters

A change in the regulatory landscape will significantly impact institutional crypto investment. Solana ETF approval would bring institutional investors to the asset, boosting its value. 

Source : DailyCoin - Nov 19, 2024