VanEck's Matthew Sigel has cautioned that a Solana ETF won't gain US regulatory approval without a key soft fork, suggesting the upcoming elections might be a decisive factor.

Matthew Sigel, Head of Research at VanEck, has responded to the Brazilian government's recent approval of spot Solana ETF products. He thinks the US regulators are too preoccupied with trivial matters to notice that the South American nation has surpassed them in this respect.

Brazil became the first country to back a spot Solana ETF on Wednesday when it gave its approval.

Regulatory Delays Shame US

According to Coingape, after Brazil's regulator moved on the SOL ETF, many experts began to wonder if the US would follow suit and approve the offering applications. The fact that Brazil approved this offer before the United States did, according to Sigel, shames him.

He said something that made it sound like the US SEC is more interested in stifling crypto initiatives than encouraging them.

X was written by Sigel:

“This admin is winning lawsuits against Big Tech for antitrust, but won’t allow open source alternatives to thrive.”

There should be no delay in the regulator's licensing of spot ETFs in the region, according to the VanEck Executive, and "customer welfare" is insufficient justification. It is worth mentioning that more than a month ago, VanEck and 21Shares both applied to list SOL ETFs.

Soft Fork Needed

According to Sigel, the digital asset industry is hoping for a possible government that is pro-crypto, given the current posture of the SEC. It is his belief that the White House possesses the key to a "soft fork" that is necessary in the US regulatory landscape.

The SEC may quickly approve the Solana ETFs, even if it's just to appease crypto voters before of the next elections. Also, the SEC made a huge U-turn by agreeing to authorize spot Bitcoin ETFs in January and spot Ethereum ETFs in June. The regulator's position on cryptocurrency may have genuinely shifted.

Solana, Cardano, and Polygon were all defendants in a lawsuit filed by Binance, but the Commission recently chose not to argue that they are securities. This shows that the crypto ecosystem is getting closer to its goal.

VanEck Highlights SEC Issues

Concerning the digital asset market, the SEC has further matters to address. Concerns about the way the US SEC is dealing with spot Bitcoin ETFs have been voiced by executives from Coinbase and VanEck. They brought attention to the fact that the regulatory structure directly led to higher borrowing prices.