In the past, the U.S. securities regulator (SEC) had rejected multiple applications for listed Solana funds and directed the Chicago Board Options Exchange (CBOE) to withdraw previously filed 19b-4 applications for these investment products.

But now comes a surprising twist: the SEC has rejected the New York Stock Exchange's (NYSE) 19b-4 application for the listing and trading of the Grayscale Solana Trust approved.

James Seyffart, ETF analyst at Bloomberg, said:

https://x.com/JSeyff/status/1887621125116473556

According to his colleague Eric Balchunas, the move is remarkable: it is the first time the SEC has accepted an ETF application for a cryptocurrency that was previously labeled a "security."

The SEC had rejected the applications led by Gensler because it believed they were incorrectly filed as commodity trust shares, explains financial lawyer Scott Johnsson. According to Seyffart, the final filing deadline for the Grayscale Spot Solana ETF is now around Oct. 11.

On Thursday, the SEC also confirmed several other applications for crypto-ETFs, including Grayscale's application for a Litecoin ETF and BlackRock's proposal to allow in-kind redemptions for the iShares Bitcoin ETF. In addition, the CBOE filed applications for the listing and trading of four XRP funds.

Balchunas notes, "We are now in new territory, even if it is only a small step, but it seems to be a direct result of the change in leadership."

This decision has further implications. In several lawsuits against crypto-exchanges, the SEC had accused them of selling illegal securities, citing Solana, among others, as an example. These lawsuits, too, are now likely to be dropped.