VanEck is a major asset manager and Mango Markets operates a decentralized cryptocurrency exchange on Solana’s blockchain. Both are navigating important developments which could have a significant impact on their business and the wider crypto market. VanEck, despite regulatory hurdles and a possible settlement between Mango Markets and the SEC for securities laws violations, continues to work on launching a Solana exchange-traded funds (ETF).
VanEck Solana’s ETF plans still in play despite removal of regulatory filing
VanEck is a leading asset manager within the crypto space. Despite recent uncertainty surrounding the regulatory process, VanEck remains committed to the launch of an exchange-traded funds (ETF) for Solana. Cboe Global Markets – a large exchange operator – removed the regulatory filing which proposed to list the Solana ETF. VanEck clarified its position after this move raised concerns within the industry.
Cboe’s 19b-4 submission related to VanEck Solana ETF, which was visible on its website until Aug. 9th, had disappeared. It is important for ETFs to be listed on exchanges such as Cboe and Nasdaq. The standard 19b-4 procedure, which involves requesting approval from the United States Securities and Exchange Commission, or SEC, before listing new ETFs. The sudden removal of the Solana ETF led to speculation.
Matthew Sigel (VanEck’s Head of Digital Assets Research) quickly responded to the concern through a blog post. Sigel emphasized the fact that VanEck’s Solana ETF plans will not be halted by the deletion of the 19b-4. He said that although exchanges are responsible for 19b-4 submissions, VanEck is the one who has to file the S-1 prospectus, which is the ETF’s document.
Sigel said that some people have noted the VanEck Solana ETF’s 19b-4 has been taken off the Cboe site. Remember that Nasdaq & Cboe must file rule changes (19b-4) in order to list ETFs. VanEck is responsible for the S-1 prospectus. “Ours is still in play.”
Approval: The Road to Approval
Market participants have been watching closely the journey towards launching a Solana ETF, particularly after the successful listings of Bitcoin (BTC), Ether (ETH), and other ETFs this year. VanEck and 21Shares had their Solana ETF proposal submitted by Cboe to the SEC in July. A final decision is expected by March 2020.
SEC has approved crypto-based ETFs with caution. Regulators have scrutinized each proposal for its structure and conformity with laws. The launch of Bitcoin and Ether exchange-traded funds (ETFs) using grantor trust funds has set precedents that may influence future approvals for crypto ETFs.
VanEck has shown its confidence in Solana’s future potential by deciding to move forward with an ETF. Sigel noted that VanEck sees Solana in the same light as Bitcoin or Ether. The evolving interpretations of the law have led to this perspective, which is based upon crypto assets being viewed as commodities on secondary markets, despite their potential classification as securities.
Experts from the industry weighed in to discuss the removal of the filing 19b-4. Summers, the co-founder and CEO of Synoptic intelligence, questioned whether this removal was a sign of a withdrawal from the 19b-4 files.
VanEck is steadfast despite these obstacles. Sigel reiterated the commitment of the company to advocate for the Solana ETF along with its exchange partners. He stressed that his firm was actively working with regulators in order to make sure that the ETF proposed is aligned with market and legal requirements.
VanEck, as well as the wider cryptocurrency market, will be celebrating a major milestone with the potential launch of an ETF for Solana. Solana’s market cap is dwarfed by Bitcoin and Ether. However, the unique blockchain technology it uses and its growing ecosystem has attracted a lot of attention from developers and investors.
Success of the Solana ETF will not only give investors new ways to invest in this promising asset, but it also signals the SEC’s willingness to expand the range of cryptocurrency ETFs to include assets other than the well-established giants such as Bitcoin and Ether.
VanEck has shown a steadfast commitment to the Solana ETF, despite the uncertainty caused by the Cboe removal. Market participants will closely monitor developments as the regulatory process unfolds. The potential launch of an ETF for Solana is expected to have lasting effects on the crypto landscape.
Mango Markets’ future is uncertain amid SEC settlement proposal
Mango Markets is preparing to reach a settlement with the U.S. Securities and Exchange Commission over claims of violations of securities laws. Avraham Eisberg, the fraudster who orchestrated a $110,000,000 scam, has now brought the decentralized exchange to a crucial moment in its history.
Mango DAO began voting Monday on the “SEC Settlement Offer Proposal.” The proposal contains several important actions which would fundamentally change the operations and structure of Mango Markets. The proposal includes several key elements, including the payment of fines in the hundreds of thousands, destruction of DAO tokens and delisting these tokens on other trading platforms.
The SEC may not have accepted the proposal yet, but the Mango DAO has received enough votes to pass the measure. The future of Mango Markets could be in doubt if the SEC accepts the proposed terms. This is especially true given how important the MNGO to its governance and operation are.
Mango Markets has used the MNGO token as a key component in its governance model. MNGO holders have used their tokens to make a variety of important decisions. These include token listings, debt repayments and responses to regulatory action such as SEC’s current settlement proposal. This would put the DAO, and platform at risk and raise questions regarding how governance and day-today operations would be handled moving forward.
Mango Markets could be crippled by the obsolescence and decentralization of MNGO, which would undermine the principles on which the platform was founded. This loss could impact the confidence of investors and affect the ability of Mango Markets to retain or attract existing users.
What happened after the Eisenberg Attack?
Mango Markets is still recovering from Avraham’s October 2022 exploit, in which Avraham Eisenberg swindled the protocol out of $110,000,000. Eisenberg’s “highly profitable trading strategies,” as he called them, resulted in a criminal fraud and manipulative trial that marked a major moment in decentralized finance history.
Mango Markets suffered substantial losses as a result of the exploit, but it also revealed vulnerabilities in its governance and design. Mango Markets faced many challenges in the wake of this incident, including scrutiny by multiple U.S. regulatory agencies.
Mango Markets faces many regulatory issues. The SEC settlement is only one of them. Also, the Department of Justice and Commodity Futures Trading Commission are investigating the platform. The SEC has made specific allegations that Monday’s proposed solution addresses. However, there is uncertainty about the regulatory environment as a whole.
The SEC investigation, according to the proposed proposal, centers around allegations that Mango DAO has sold an unregistered securities through the MNGO Token. Mango Labs – the company behind Mango Markets – is also facing allegations of being an unlicensed brokerage. Blockworks Foundation is another entity that has been under investigation for regulatory violations.
Mango DAO would not admit or deny any of the accusations in the proposed SEC settlement. The DAO will instead agree to pay $223,228 in fines. Despite the relatively small penalty, Mango Markets may suffer a significant impact, especially if SEC concerns result in further regulatory action or if DOJ or CFTC investigation results in additional sanctions or restrictions.
Mango Markets currently holds USDC, and other assets worth nearly $2 million. However, the value of this holding in terms of settlements and operations remains unclear. The DeFi community is closely monitoring Mango Markets as it navigates through these regulatory hurdles.
Mango Markets, during Solana’s summer 2021 bull run made headlines when it sold $70,000,000 worth of MNGO to the general public. The sale at the time was not open to U.S.-based investors. This may have been done to try to avoid regulatory scrutiny, which has come down on the platform. The SEC, DOJ and CFTC are continuing their investigation. Decisions made over the next few weeks will determine whether Mango Markets is able to find a way forward, or if it becomes a cautionary story in the DeFi sector.
This site is for entertainment only. Click here to read more
