Regulatory Uncertainty: VanEck Likens Solana to BTC and ETH

Amid regulatory concerns surrounding the Solana cryptocurrency, which erupted over the weekend, the head of digital assets research at VanEck, Mathew Sigel, announced that the firm considers Solana a commodity asset, likening the cryptocurrency to Bitcoin and Ethereum.

The situation escalated after VanEck’s 19b-4 and 21-shares Solana ETF documents were removed from the CBOE website, raising speculation that the SOL token might have been categorized by the U.S. Securities and Exchange Commission (SEC) as a security.

Mathew explained that the clarification became necessary due to the classification of some crypto assets as securities in the primary market and commodities in the secondary market, as highlighted by courts and regulators.

The 19b-4 form is a document that contains essential information about ETF products needed for the approval process of ETF.

While downplaying the security rumors surrounding the SOL token, Mathew praised Solana’s commitment to decentralization over the last few years, noting that about 27% of the SOL token supply is controlled by the top 100 holders.

“Moreover, the top 10 addresses now hold less than 9%. With over 1,500 validators across 41 countries, operating in more than 300 distinct data centers, Solana boasts a Nakamoto Coefficient of 18—surpassing most networks we monitor,” Mathew added.

Additionally, Mathew described the upcoming Firedancer client, an upgrade of the existing Firedancer, which is set to go live in 2025, as a development that will further enhance the decentralization of the Solana blockchain technology, aiming to eliminate single entity dominance on the network. Mathew believes that this development, coupled with other benefits that Solana offers in the crypto sector, places it on par with “digital commodities like BTC and ETH.”

“We remain committed to advocating this position alongside our exchange partners to the appropriate regulators,” Mathew added.