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The US Securities and Exchange Commission (SEC) on Monday postponed its verdict regarding the proposed Truth Social Bitcoin exchange-traded fund (ETF), pushing the review date to Sept. 18 from Aug. 4.
The fund, supported by the Trump Media and Technology group, is pursuing approval to list the Truth Social Bitcoin ETF on the NYSE Arca exchange under the SEC’s commodity-based trust share framework.
The regulatory body, which can take as long as 270 days to either approve or deny ETF applications, stated that it extended the review timeframe to allow additional time for assessing the proposal and any concerns raised.
The SEC remains cautious
The Bitcoin ETF backed by Trump wasn’t the sole fund encountering delays from the SEC today. The agency also delayed decisions regarding Grayscale’s Solana Trust, which is now extended to Oct. 10, and Canary Capital’s proposed Litecoin ETF.
Hester Peirce, a commissioner at the SEC — known as “Crypto Mom” for her supportive stance on cryptocurrencies — recently encouraged industry participants to anticipate slower approvals. “People must be patient… We are navigating some ongoing litigation. There are numerous other factors to consider,” she expressed in an interview with Bloomberg in May.
Nevertheless, today’s delays are swift compared to historical precedents. It took more than a decade from the first spot Bitcoin ETF application in 2013 for the SEC to ultimately approve it in January 2024.
Concerns regarding Trump’s ETF
In May, Senators Elizabeth Warren and Jeff Merkley dispatched a formal letter to the Office of Government Ethics, branding a Trump-affiliated crypto deal involving World Liberty Financial, Binance, and a United Arab Emirates (UAE) enterprise “a staggering conflict of interest.”
They articulated,
This transaction raises the concerning possibility that the Trump and Witkoff families might leverage their stablecoin for profitable ventures tied to foreign corruption.
There are also apprehensions that Trump may personally gain from regulatory actions influencing crypto markets or firms linked to his business interests, particularly if the SEC authorizes a financial product legitimizing or boosting demand for assets associated with his brand.
Trump has been actively involved with the crypto sector since his term began. On July 18, he signed the GENIUS Act, marking the first significant US legislation to establish a clear regulatory framework for stablecoins.
On June 25, the Trump-appointed leader of the Federal Housing Finance Administration (FHFA), William J. Pulte, issued a directive mandating Fannie Mae and Freddie Mac to draft proposals that would allow unconverted cryptocurrency holdings to qualify as potential assets in single-family mortgage underwriting, without necessitating conversion to US dollars.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations — Samson Mow
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