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Solana Weekly: SEC Greenlights LSTs as Spot ETF Race Intensifies

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A Monumental Week for Solana: Regulatory Clarity and ETF Momentum

It’s been a landmark week in SolanaLand, marked by significant regulatory breakthroughs and a surge in institutional interest that could reshape its future. While the SOL token saw modest gains, closing the week up 5% around the $175 mark after touching $190, the real stories unfolded away from the price charts. The ecosystem saw two game-changing developments: the U.S. Securities and Exchange Commission (SEC) provided crucial clarity on Liquid Staking Tokens (LSTs), and the race for a spot Solana ETF hit a fever pitch.

These events, combined with strong ecosystem growth, signal a new phase of maturity for the high-performance blockchain. Let’s dive into the key headlines that made this a week to remember.

SEC Declares LSTs Are Not Securities, Unlocking DeFi’s Potential

In a huge win for the decentralized finance (DeFi) community, the SEC declared that certain liquid staking activities and their corresponding tokens are not considered securities. This is the regulatory clarity the industry has been waiting for.

Liquid Staking Tokens, like mSOL from Marinade or JitoSOL from Jito, represent a user’s staked SOL. They allow holders to earn staking rewards while still using their capital across other DeFi applications, boosting liquidity and efficiency. The SEC’s decision removes a major cloud of uncertainty that has loomed over these innovative products.

There is one important caveat: this classification holds true only as long as the underlying asset—in this case, SOL—is not deemed a security. Given the current momentum toward a spot Solana ETF, the risk of SOL being classified as a security in the U.S. appears to be diminishing significantly.

This news is incredibly bullish for leading Solana LST protocols, including:

  • Marinade Finance
  • Jito Labs
  • Kamino Finance
  • Lido Finance

By greenlighting LSTs, the SEC has opened the door for wider adoption and deeper institutional participation in the Solana DeFi ecosystem.

The Great ETF Rush: Wall Street Giants Bet on Solana

The positive regulatory sentiment around LSTs is directly fueling momentum for a spot Solana ETF. The past week saw a flurry of activity as financial behemoths formally entered the race, signaling immense confidence in Solana’s future.

Major firms that have filed for or updated their spot Solana ETF applications include:

  • BlackRock
  • Fidelity
  • Grayscale
  • VanEck
  • 21Shares

According to reports, the SEC has asked prospective issuers to submit amended S-1 forms, a key step in the approval process. This rapid back-and-forth suggests the agency may be moving faster than anticipated on Solana ETF approvals, following the successful launches of Bitcoin and Ethereum ETFs.

The Crucial Connection: Pushing for LSTs in ETFs

In a strategic move, a coalition of industry leaders including Jito Labs, Bitwise, Multicoin Capital, and the Solana Institute submitted a public letter to the SEC. They urged the agency to approve the inclusion of LSTs within exchange-traded products. Allowing an ETF to hold LSTs would enable the fund to generate staking yield for its investors, making a Solana ETF a potentially attractive, yield-bearing product for traditional finance.

Ecosystem Pulse: Seeker Ships and On-Chain Health Thrives

Beyond the regulatory headlines, the Solana ecosystem continues to fire on all cylinders. This week, the much-anticipated Solana Seeker phone began shipping worldwide, putting powerful, crypto-native hardware into the hands of users and developers. This move is critical for fostering a new generation of mobile-first decentralized applications (dApps).

The network’s on-chain metrics reflect this vibrant activity:

  • Total Value Locked (TVL): Solana’s TVL has climbed to an impressive $10.24 billion, creating a clear gap over BNB Chain for the #3 spot.
  • Ecosystem Market Cap: The broader Solana ecosystem grew by 8%, surpassing a market capitalization of $250 billion.
  • DEX Volume: While weekly DEX trading volume saw a slight 5% dip, the monthly total still soared past the $100 billion mark, showcasing sustained user activity.
  • Global Adoption: Hong Kong’s approval of its first license for retail Solana trading could unlock significant new liquidity from the Asian market.

What’s Next for Solana?

This week was more than just a series of good news items; it was a fundamental shift. The convergence of regulatory clarity from the SEC, intense institutional demand via ETFs, and organic ecosystem growth from products like the Seeker phone has solidified Solana’s position as a top-tier blockchain contender. The foundation is being laid for what could be an explosive next chapter for the network and its community.

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