The Chicago Mercantile Exchange (CME) has quashed speculation about listing Solana futures, dealing a significant blow to the anticipation surrounding a potential Solana Exchange Traded Fund (ETF) in the US markets.

Information leaked by a source familiar with the situation, shared via the Twitter account db (@tier10k), revealed that the CME has no intentions to list Solana futures. This news comes as a setback to the hopes of many in the crypto community who were eagerly awaiting the possibility of a Solana ETF.

Scott Johnsson, a seasoned finance lawyer at Van Buren Capital, weighed in on the development, highlighting the regulatory challenges facing Solana. While emphasizing that a Solana ETF does not necessarily require the CME to act as the designated contract market (DCM), Johnsson noted that any potential market would need a robust framework, including a Custody and Security Services Agreement (CSSA) and sufficient liquidity.

However, concerns loom large over the feasibility of a Solana ETF amid ongoing enforcement actions by the US Securities and Exchange Commission (SEC) against major crypto exchanges like Coinbase and Binance. Johnsson elaborated that current regulatory actions could hinder any self-certification of Solana as commodity futures, even if the CME or another DCM were to proceed.

Moreover, Johnsson underscored the need for a substantial shift in SEC administration or policies before Solana could advance towards an ETF. He suggested that such a change or a significant reversal in the SEC's stance seems more likely for Solana's prospects.

James Seyffart, a Bloomberg ETF analyst, echoed Johnsson's views on the SEC's stance, highlighting the regulatory hurdles faced by Solana. Seyffart expressed doubt that the current SEC administration would permit the registration of Solana futures with the Commodity Futures Trading Commission (CFTC), given the SEC's classification of Solana as a security.

The leak from the CME has dashed immediate hopes for Solana's inclusion in futures markets and dimmed the prospects for a spot ETF in the near term. Despite the news, the SOL price has remained relatively stable, aligning closely with the broader market trend.

In conclusion, regulatory challenges and the current SEC stance pose significant obstacles to Solana's journey towards ETF approval, highlighting the complexities of navigating the regulatory landscape for cryptocurrencies.