Key Takeaways:
- The SEC has delayed its decision on Franklin Templeton’s spot Solana ETF.
- The deadline is shifted to November 14 from September 15 previously.
- The agency is currently reviewing other crypto ETFs too.
The U.S. Securities and Exchange Commission (SEC) has decided to postpone its decision on whether to authorize a proposed Solana exchange-traded fund (ETF) by Franklin Templeton. The decision is until November 14, 2025. The product is subject to scrutiny by the regulators, considering that it would be listed on the Cboe BZX Exchange if it were approved.
Proposal Under Extended Scrutiny
In March 2025, Franklin Templeton offered its plan to create an ETF based on Solana. The application described the organization of the Franklin Solana Trust, where the shares would be traded under Rule 14.11(e) (4), the section of the Cboe regulations that applied to commodity-based trust shares. On March 12, the SEC posted the proposal to receive public comments, and on March 19.
The regulator has since undertaken a number of procedural steps. In April, the Commission deferred more time to receive further consideration of the submission. By mid-June, it had initiated formal action under Section 19(b)(2)(B) of the Securities Exchange Act, a process that usually indicates that the organization is going to investigate market impact, investor protection, and compliance levels further.
By statutory deadlines, the SEC had until September 15 to approve, deny, or extend its evaluation. The action on Tuesday gave the agency the last possible extension, making mid-November the date of decision.
Key Issues Under Consideration
The Commission is also diverting its attention to the Franklin Solana Trust, in its quest to determine whether it meets the requirements of the commodity-based ETFs. The aspects that need to be examined are the form of secondary trading, the way the trust would work under the federal securities law, and the degree to which the Solana market exhibits the ability to resist manipulation.
These reflections resemble the concerns of earlier reviews of digital asset ETFs, including Bitcoin and Ethereum ones. The regulator has continuously raised issues relating to market surveillance, transparency in trading, and investor protection as reasons to further investigate.
Timeline of Developments
- March 12, 2025: Cboe BZX Exchange submits the proposed rule change to SEC.
- March 19, 2025: Commission publishes application to comment.
- April 29, 2025: A first-time extension will provide an opportunity to have more time to review.
- June 17, 2025: The proceedings, pursuant to Section 19(b)(2)(B), are opened.
- September 15, 2025: First final deadline dodged by extension.
- November 14, 2025: New deadline to issue final ruling.
Each step represents the regulatory structure as outlined in the Exchange Act that enables SEC to prolong its consideration by a series of steps prior to issuing its final determination.
What’s Happening With Crypto ETFs?
The application submitted by Franklin Templeton is not the only effort of large financial institutions to obtain the status of cryptocurrency-based ETFs. Given the green light, the Solana ETF would enable investors to gain exposure to the digital asset in a regulated exchange-traded vehicle as opposed to having to own the tokens directly.
The SEC’s approach to crypto-linked ETFs has been marked by cautious, step-by-step analysis. Offering its right to prolong the review, the regulator highlights the problem of incorporating newer blockchains such as Solana into the usual investment practices.
In the case of Franklin Templeton, the November deadline is now the final point in a process that has been ongoing over a period of more than eight months. The ultimate ruling will conclude whether or not shares of the Solana trust will be able to list and trade on Cboe BZX under the current regulations.
Also Read: Cboe Plans to Launch Bitcoin, Ethereum Continuous Futures Contracts
