Initially the SOHC was considered legal, then Ronnie Householder, got wind of the Holman Moody tests. Holman Moody ran dyno tests on a hemi, that was purchased from Ray Fox. The engine made 550 bhp. Ronnie heard the SOHC was making over 600 bhp. Game ON! HE went into a full press, told Big Bill France, that Chrysler would develope a Dohc, in response. Tests at Daytona had the 1964 Galaxie reported to be hiting 190 mph on the straights! A little known fact was the France family had the second largest holding of GM stock. Bill really believed GM would return, to NASCAR, but an engine war would hurt those chances. So hemi, and HI riser engines were Outlawed for 1965, but GM did not return.
So for 1966 both the hemi and Sohc were approved, with a catch, a Ford running the Sohc would have to weigh and extra 427 lbs. HenryII was not happy , but agreed to a test conducted by Goodyear, too determine what the effect of the extra 427 lbs, would be. Ralph Moody, and NASCAR officials attended the test, which I believe was run at Atlanta Speedway. The Galaxie was fast, and broke the existing track record. BUT, tire wear was much higher, and Moody estimated at least 4 more pitstops, would be needed in the 500 mile race. The decision was Henry II's and after a discussion with Big Bill, Henry made the decision to pull from NASCAR, but also for Holman Moody, to start developing the Fairlane based stock car.
For Jay, I did see a Sohc Pontiac hemi engine, that was being developed at the time for possible production in the 70-71 time. However, Big Bill, after all the political maneuvering, got what he was striving for, getting rid of pesky Ford and Chrysler, and getting GM back in NASCAR.