Trump’s Truth Social Bitcoin ETF among multiple crypto funds delayed by SEC

The US Securities and Exchange Commission (SEC) connected Monday delayed its determination connected the projected Truth Social Bitcoin exchange-traded money (ETF), extending the reappraisal deadline to Sept. 18 from Aug. 4.

The fund, backed by the Trump Media and Technology group, is seeking support to database the Truth Social Bitcoin ETF connected the NYSE Arca speech nether the SEC’s commodity-based spot stock framework. 

Source: SEC.gov

The agency, which tin instrumentality up to 270 days to o.k. oregon cull ETF applications, said it extended the review play to let much clip to measure the connection and immoderate issues raised.

The SEC continues to workout caution

The Trump-backed Bitcoin ETF wasn’t the lone money facing delays from the SEC today. The bureau besides postponed decisions connected Grayscale’s Solana Trust, extended to Oct. 10, and Canary Capital’s projected Litecoin ETF.

Hester Peirce, a commissioner connected the SEC — dubbed “Crypto Mom” for her pro-crypto stance — precocious urged manufacture stakeholders to expect slower approvals. “People person to beryllium patient… We person immoderate ongoing litigation we’re trying to enactment through. We person tons of different considerations,” she said successful an interview with Bloomberg successful May.

Still, today’s delays are swift by humanities standards. It took implicit a decennary from the archetypal spot Bitcoin ETF application successful 2013 for the SEC to yet o.k. it successful January 2024.

Questions implicit Trump’s ETF

If approved, the Truth Social Bitcoin ETF would beryllium the archetypal crypto ETF linked to a sitting US president’s concern interests. While the ETF itself hasn’t drawn ceremonial objections from the SEC, different Trump-linked crypto deals person raised questions astir ethics, influence, and regulatory impartiality, particularly among Democrats.

In May, Senators Elizabeth Warren and Jeff Merkley sent a ceremonial missive to the Office of Government Ethics, calling a Trump-linked crypto deal involving World Liberty Financial, Binance and a United Arab Emirates (UAE) steadfast “a staggering struggle of interest.”

They wrote,

This woody raises the troubling imaginable that the Trump and Witkoff families could grow the usage of their stablecoin arsenic an avenue to nett from overseas corruption.”

There is besides interest that Trump could personally payment from regulatory decisions that interaction crypto markets oregon firms connected to his concern ventures, particularly if the SEC approves a fiscal merchandise that legitimizes oregon increases request for assets linked to his brand.

Trump has actively engaged with the crypto manufacture since helium took office. On July 18, helium signed the GENIUS Act, the archetypal large US instrumentality to supply a wide regulatory model for stablecoins.