The U.S. Securities and Exchange Commission (SEC) has announced an extension of the review period for the Truth Social Bitcoin exchange-traded fund (ETF) application, now set to conclude on September 18.
Extension of ETF Review Period
The SEC has extended the review deadline for the Truth Social Bitcoin ETF application to September 18 from August 4. Backed by Trump Media and Technology Group, this ETF aims to list on the NYSE Arca under the SEC's commodity-based trust share framework. The agency can take up to 270 days to review ETF applications, allowing for more thorough assessment of proposals and related issues.
Cautions from SEC
The SEC also postponed decisions on other funds, including Grayscale's Solana Trust, now set for an October 10 review, and Canary Capital's proposed Litecoin ETF. SEC Commissioner Hester Peirce, known for her pro-crypto stance, urged industry stakeholders to be patient and expect slower approvals due to ongoing litigation and other considerations.
Ethical Questions Surrounding Trump's ETF
If approved, the Truth Social Bitcoin ETF would be the first crypto ETF linked to a sitting U.S. president's business. While the ETF has not faced formal objections from the SEC, other Trump-affiliated crypto deals have raised concerns about ethics and regulatory impartiality. Senators Elizabeth Warren and Jeff Merkley sent a formal letter citing potential conflicts of interest in a Trump-linked crypto deal.
The discussion surrounding the approval of the Truth Social Bitcoin ETF continues to stir controversy, while the SEC remains cautious in its approach to new crypto funds.
