This week, the SEC announced an extension on the review of Bitcoin ETF applications from Truth Social and Grayscale. This decision raises new questions regarding the political and regulatory aspects of crypto investments.
Delayed SEC Decisions on ETFs
The SEC has reported extending the review period for the Truth Social Bitcoin ETF until September 18. This initiative, backed by the Trump Media and Technology Group, was submitted on June 3 and is still in the early stages of review. Originally set for a decision on August 4, the regulator opted to extend the timeline by 45 days to allow thorough exploration of the proposal and public comments.
Political Risks and Cryptocurrencies
Donald Trump's ties to the cryptocurrency market have raised concerns among Democrats. Should the SEC approve the ETF from Truth Social, it would mark the first crypto fund associated with a U.S. president. Some crypto experts warn that Trump’s involvement with cryptocurrencies could present a conflict of interest. Senator Jeff Merkley stated, "Allowing Trump to create a Bitcoin ETF opens the door to abuse of power. He can influence regulation and then profit from it."
Additional Delays for Grayscale
Additionally, the SEC has also postponed the decision regarding Grayscale’s conversion of its Solana Trust into an ETF until October 10. This also reflects the regulator's hesitation regarding broader challenges in the crypto regulatory landscape.
The ongoing delays for the Bitcoin ETF from Truth Social and Grayscale highlight the uncertainty surrounding cryptocurrency regulation in the U.S. and potential political risks associated with the market.
