The U.S. Securities and Exchange Commission (SEC) has once again delayed decisions on cryptocurrency-backed ETFs, this time targeting Solana (SOL) and Dogecoin (DOGE) applications. The move reflects the regulator’s ongoing caution toward integrating altcoins into mainstream financial products, even as institutional interest continues to grow.
These postponements come as the crypto industry awaits clarity on asset classification, with the SEC’s latest delays prompting concern, confusion, and debate across trading desks and Twitter feeds.
Solana ETF Review Postponed by SEC
The SEC has extended its review of Grayscale’s Solana Trust ETF proposal, citing the need for further assessment of investor protections and market integrity standards. Grayscale had hoped to position Solana alongside Bitcoin and Ethereum as an ETF-listed asset, especially after spot BTC ETFs were approved in early 2024.
“We believe Solana has matured into an asset worthy of institutional exposure,” Grayscale wrote in its application. “Its liquidity and developer activity rival Ethereum in several metrics.”
However, the SEC is not convinced, at least not yet. The regulator has raised questions about price discovery, potential market manipulation, and Solana’s token classification. This pause has frustrated many who believed Solana would be the next major ETF candidate post-Ethereum.
Dogecoin ETF Application Acknowledged but Not Approved
Simultaneously, the SEC has acknowledged a separate application by 21Shares for a Dogecoin ETF, but stopped short of approval. The application enters a public comment period, with a final decision expected by January 9, 2026.
Originally launched as a meme, Dogecoin has since evolved into a community-powered asset with considerable liquidity. Backers argue that DOGE’s large market cap and high daily volume justify its inclusion in the ETF landscape.
Still, critics point to the lack of a core development team, high volatility, and speculative trading as reasons for caution. The SEC appears to be weighing these risks carefully before allowing DOGE into institutional vehicles.
Regulatory Caution or Market Stalling?
The delays are part of a larger pattern. The SEC has slowed down or deferred decisions on multiple altcoin-based ETFs over the past 12 months, including products linked to XRP, Cardano, Litecoin, and now Solana and Dogecoin.
Key Concerns From the SEC:
Market Manipulation: Lack of robust surveillance and oversight on most altcoin markets.
Security Classification: Whether assets like SOL and DOGE qualify as securities.
Liquidity and Custody: Challenges with ensuring secure, scalable ETF operations.
Investor Protection: Concerns about altcoin volatility and speculative behavior.
“Until the SEC decides how to classify tokens like SOL, ETF approvals remain in limbo,” said attorney James Murphy (MetaLawMan). “These delays are regulatory smoke signals.”
Market Reaction: Mixed Sentiment, Short-Term Volatility
Following the announcement, Solana dipped slightly to $142.65, down 3.2% on the day, while Dogecoin hovered around $0.153, down 2.8%. Investors expressed frustration, but the general sentiment remains cautiously optimistic.
Short-Term: Traders expect some volatility as markets react to the delay.
Mid-Term: Analysts say further engagement from the SEC may set the groundwork for eventual approval.
Long-Term: Institutional interest continues to grow, with or without immediate ETF access.
Price Table
| Asset | Price | 24h Change | ETF Status |
|---|---|---|---|
| Solana (SOL) | $142.65 | -3.2% | Decision delayed by SEC |
| Dogecoin (DOGE) | $0.153 | -2.8% | Under review, comments open |
| Ethereum (ETH) | $3,098 | +1.5% | Spot ETF approved |
| Bitcoin (BTC) | $65,920 | +2.1% | Spot ETF approved |
Why These ETF Delays Matter
ETFs serve as a gateway for institutional capital into crypto markets. A green light for Solana or Dogecoin would:
Unlock billions in potential investment.
Cement legitimacy for altcoins in traditional portfolios.
Provide retail investors with regulated exposure.
Without ETF access, these assets remain largely siloed within crypto-native platforms, limiting adoption by conservative investors and retirement accounts.
Industry Voices Call for Urgency
Crypto legal experts, analysts, and asset managers are growing impatient.
“The SEC cannot regulate through inaction forever,” tweeted Bloomberg analyst James Seyffart. “Altcoin ETF demand is real, and the market deserves answers.”
Meanwhile, companies like 21Shares and Grayscale continue to engage with regulators and prepare for future launches. Several sources suggest that if Ethereum staking ETFs are approved in Q3, Solana could follow in Q1 2026, assuming no enforcement action occurs first.
Conclusion
The SEC’s decision to delay Solana and Dogecoin ETF approvals underscores the complex regulatory challenges facing altcoin adoption in traditional finance. While the crypto community remains hopeful, regulators’ message is clear: Not every coin is ready for Wall Street.
Still, the conversation is moving forward. And as classification clarity improves and surveillance agreements evolve, these ETFs may not be denied, only deferred.
FAQs
Why did the SEC delay the Solana ETF?
The SEC extended its review to evaluate market surveillance, asset classification, and investor protections related to the Solana ETF application by Grayscale.
What’s the status of the Dogecoin ETF?
The Dogecoin ETF proposal by 21Shares has been acknowledged. It is now in a public comment phase, with a decision expected by January 2026.
How will these delays impact SOL and DOGE prices?
Short-term volatility may continue. However, long-term price movement will depend on regulatory clarity and future ETF developments.
Glossary of Key Terms
ETF (Exchange-Traded Fund): A tradable investment vehicle that tracks the value of an underlying asset or index.
Security Classification: Determination of whether an asset qualifies as a security under U.S. law.
Market Surveillance: Tools and protocols to detect manipulation or irregular trading behavior.
Comment Period: A public consultation window where regulators collect opinions before making a ruling.
References and Sources
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