Solana (SOL) rallied to a six-month high of $188 as investors reacted to Donald Trump's recent victory in the US presidential election.
Solana's price increased by 3.4% in the last 24 hours, opening its market cap to more than $88 billion, surpassing BNB as the fourth largest crypto, according to CoinGecko data.
With Trump returning to the Oval Office, the crypto market is becoming increasingly hopeful that the administration will provide a more favorable regulatory environment, allowing the approval of the Solana Exchange Traded Fund (ETF) in the US.
Speaking to Decrypt, Balaji Srihari, Head of Business at CoinSwitch, expressed hope for the regulatory vision it would allow. Solana To fully realize its potential. “Donald Trump's victory signals a more favorable regulatory environment for the crypto industry,” he said, “which could soften the SEC's strict stance on assets like Solana.”
“Ultimately, while a change in political leadership may ease Solana's path to approval, the ETF's future depends on complex regulatory and market dynamics,” Srihari added.
SEC classifies Solana as a security, complicating ETF approval. Solana needs to meet AML and KYC requirements, demonstrate strong interest and secure protection — key factors for legitimacy, a CoinSwitch official said.
Trump's re-election has been widely expected in the industry, given his consistent stance on crypto.
During the campaign, Trump promised strong support for the crypto industry, including a push for deregulation and support for US-based crypto mining.
Zeta Markets founder Anmol Singh sees Trump's return as a boon for Solana's prospects, especially with its strong fundamentals.
“Solana is a front-runner to benefit from these headwinds due to its large user base, large capital base, battle-tested protocols, and increasingly decentralized organization,” he told Decrypt. “It also has the potential to move in tandem with BTC and ETH, solidifying itself as a major player if it gets ETF approval.”
The 47th US President has hinted at firing SEC Chairman Gary Gensler. But despite Trump's campaign promises, it should be noted that US presidents do not have the power to fire the heads of federal agencies.
Still, analysts expect Gensler's potential departure to create an opening for a new SEC chairman who could prioritize pro-crypto asset policies like Solana's.
Edited by Stacy Elliott.
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