SEC Delays Decisions on Bitcoin & Solana Trust ETFs
SEC Postpones Decision on Trump-Backed Bitcoin ETF
The U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding the proposed Truth Social Bitcoin exchange-traded fund (ETF). The review deadline has been extended from August 4 to September 18.
This ETF, backed by Trump Media and Technology Group, seeks to list on the NYSE Arca exchange under the SEC’s commodity-based trust share framework.
The SEC, which can take up to 270 days to either approve or reject ETF applications, stated that the extension allows for a more comprehensive evaluation of the proposal and any potential issues.
Further Delays: Grayscale’s Solana Trust and Litecoin ETF
The SEC's caution extends beyond Bitcoin ETFs. Decisions on Grayscale’s Solana Trust have also been postponed, with a new deadline of October 10. Additionally, Canary Capital’s proposed Litecoin ETF is also facing delays.
SEC Commissioner Hester Peirce, known as “Crypto Mom” for her pro-crypto stance, has advised industry participants to anticipate slower approval timelines. She mentioned ongoing litigation and other considerations as factors contributing to the delays, as noted in a Bloomberg interview.
Despite these recent delays, the timeline is still relatively swift compared to the past. The first spot Bitcoin ETF application was submitted in 2013, and it took until January 2024 for the SEC to grant approval.
Ethical Concerns Surrounding Trump’s ETF
The Truth Social Bitcoin ETF raises questions regarding potential conflicts of interest due to its ties to a former U.S. President's business ventures.
Senators Elizabeth Warren and Jeff Merkley have previously raised concerns about a Trump-linked crypto deal, citing potential conflicts involving World Liberty Financial, Binance, and a UAE firm.
Concerns also exist about potential personal benefits for Trump from regulatory decisions affecting crypto markets or firms linked to his business interests, particularly if the SEC approves products that legitimize or increase demand for assets associated with his brand.
Codeum is dedicated to enhancing trust and security within the blockchain space. We provide smart contract audits, KYC verification, and custom smart contract development to ensure the integrity of blockchain projects. Learn More