Michaela
Summary: Why did the SEC delay the decision on the Truth Social Bitcoin ETF and other crypto funds?
The SEC extended its review period to allow more time to evaluate the proposals and address any issues raised. This includes the Truth Social Bitcoin ETF, Grayscale’s Solana Trust, and Canary Capital’s Litecoin ETF. The agency’s cautious approach reflects ongoing efforts to create clear rules for crypto ETFs and ensure proper oversight.
The U.S. Securities and Exchange Commission (SEC) has postponed its ruling on the proposed Truth Social Bitcoin exchange-traded fund (ETF), joining other delayed reviews such as Grayscale’s Solana Trust.
Alongside the Truth Social Bitcoin ETF, the agency also delayed decisions on Grayscale’s Solana Trust and Canary Capital’s proposed Litecoin ETF. In a July 28 filing, the SEC announced it would push back its decision on the Trump-affiliated Bitcoin ETF, extending the review deadline from August 4 to September 18.
“The Commission is extending this 45-day time period. The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the filing wrote.
The Truth Social Bitcoin ETF is a proposed investment fund tied to Trump Media & Technology Group, the parent company of the Truth Social platform. If approved by the SEC, it would be the first crypto fund with direct ties to a U.S. president’s business entity.
Although the proposed Truth Social Bitcoin ETF has not drawn formal objections, broader concerns persist over President Donald Trump’s ties to cryptocurrency ventures. Democratic Senators such as Elizabeth Warren and Jeff Merkley have raised alarms about potential conflicts of interest, warning that regulatory decisions involving digital asset firms could directly benefit Trump or his family’s financial interests.
Last week, the SEC abruptly paused Bitwise’s attempt to convert its crypto index fund into an ETF, just hours after initially greenlighting the move. The agency said the approval is now on hold pending additional review by the full Commission, noting that the order “is stayed until the Commission orders otherwise.”
Bloomberg ETF analyst James Seyffart suggested that the SEC’s recent decision to pause Bitwise’s ETF approval may reflect a broader regulatory strategy. According to Seyffart, the agency could be seeking to delay the launch of crypto index-based ETFs until it finalizes a comprehensive framework, one that would clarify which digital assets are eligible for inclusion and establish uniform listing criteria across products.
As the SEC continues to weigh its approach to digital asset regulation, the pace and structure of crypto ETF approvals remain uncertain, leaving issuers, investors, and policymakers watching closely for the agency’s next move.
Read More
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- Trump’s Truth Social Moves to List Dual Crypto ETF on NYSE
- JPMorgan to Back Crypto ETFs for Loans, Signaling Big Shift in Banking
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
