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The U.S. Securities and Change Fee (SEC) has prolonged its review interval for the Truth Social Bitcoin ETF, a proposal backed by Trump Media and Expertise Group, pushing the choice deadline from August 4 to September 18 [1]. The fund, which seeks to listing on the NYSE Arca beneath the SEC’s commodity-based belief framework, is considered one of a number of crypto-related merchandise going through regulatory delays. Alongside the Truth Social ETF, the SEC postponed choices on Grayscale’s Solana Belief (now due by October 10) and Canary Capital’s Litecoin ETF utility [2]. The company cited the necessity for extra time to consider proposals and handle “points raised” throughout the review course of.
Commissioner Hester Peirce, a vocal advocate for crypto innovation, emphasised in a Might Bloomberg interview that stakeholders ought to anticipate slower approvals amid ongoing litigation and broader coverage issues. “Folks have to be affected person… Now we have some ongoing litigation we’re attempting to work via. Now we have numerous different issues,” she acknowledged [3]. Regardless of these delays, the tempo of review stays traditionally swift in contrast to the over-decade-long approval course of for the primary U.S. spot Bitcoin ETF, which was lastly licensed in January 2024 after preliminary functions in 2013 [4].
The Truth Social ETF, if accredited, would symbolize a singular intersection of political and monetary pursuits. It’s the first crypto ETF explicitly linked to a sitting U.S. president’s enterprise ventures, elevating moral considerations amongst critics. Democratic senators Elizabeth Warren and Jeff Merkley just lately highlighted potential conflicts of curiosity in a letter to the Workplace of Authorities Ethics, criticizing a Trump-linked deal involving World Liberty Monetary, Binance, and a United Arab Emirates agency as a “staggering battle of curiosity.” They warned of dangers the place the Trump and Witkoff households may revenue from “overseas corruption” via expanded stablecoin utilization [5].
These considerations are compounded by broader scrutiny of how regulatory outcomes would possibly profit Trump’s enterprise pursuits. Analysts and lawmakers have raised alarms about the potential for regulatory choices legitimizing crypto belongings tied to his model, doubtlessly rising demand and profitability for related ventures. This scrutiny has intensified since Trump’s current legislative actions, together with the July 18 signing of the GENIUS Act, a landmark legislation establishing a regulatory framework for stablecoins, and a June 25 directive from his appointed Federal Housing Finance Administration (FHFA) director to contemplate unconverted cryptocurrency holdings as qualifying belongings in mortgage underwriting [6].
The SEC’s cautious method to crypto ETFs displays broader challenges in balancing innovation with investor safety. Whereas the company has accredited spot Bitcoin ETFs, its stance on altcoins and politically delicate proposals stays guarded. The delayed choices for the Truth Social and different ETFs underscore the SEC’s twin position as each a regulator and a mediator in ongoing authorized disputes involving main crypto companies like Grayscale and Binance.
Supply: [1] [U.S. Securities and Exchange Commission] [https://sec.gov]
[2] [CoinMarketCap Article] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]
[3] [Bloomberg Interview with Hester Peirce] [https://bloomberg.com]
[4] [CoinMarketCap Historical Context] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]
[5] [U.S. Senate Letter to Office of Government Ethics] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]
[6] [CoinMarketCap Legislative Actions] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]
