The US Securities and Trade Fee (SEC) on Monday delayed its resolution on the proposed Reality Social Bitcoin exchange-traded fund (ETF), extending the evaluate deadline to Sept. 18 from Aug. 4.
The fund, backed by the Trump Media and Know-how group, is searching for approval to checklist the Reality Social Bitcoin ETF on the NYSE Arca trade underneath the SEC’s commodity-based belief share framework.
The company, which may take as much as 270 days to approve or reject ETF purposes, mentioned it prolonged the review interval to permit extra time to guage the proposal and any points raised.
The SEC continues to train warning
The Trump-backed Bitcoin ETF wasn’t the one fund dealing with delays from the SEC as we speak. The company additionally postponed selections on Grayscale’s Solana Trust, prolonged to Oct. 10, and Canary Capital’s proposed Litecoin ETF.
Hester Peirce, a commissioner on the SEC — dubbed “Crypto Mother” for her pro-crypto stance — just lately urged trade stakeholders to count on slower approvals. “Folks should be affected person… We’ve got some ongoing litigation we’re making an attempt to work by means of. We’ve got a lot of different concerns,” she mentioned in an interview with Bloomberg in Might.
Nonetheless, as we speak’s delays are swift by historic requirements. It took over a decade from the primary spot Bitcoin ETF application in 2013 for the SEC to lastly approve it in January 2024.
Questions over Trump’s ETF
If accepted, the Reality Social Bitcoin ETF can be the primary crypto ETF linked to a sitting US president’s enterprise pursuits. Whereas the ETF itself hasn’t drawn formal objections from the SEC, different Trump-linked crypto offers have raised questions on ethics, affect, and regulatory impartiality, particularly amongst Democrats.
In Might, Senators Elizabeth Warren and Jeff Merkley despatched a proper letter to the Workplace of Authorities Ethics, calling a Trump-linked crypto deal involving World Liberty Monetary, Binance and a United Arab Emirates (UAE) agency “a staggering battle of curiosity.”
They wrote,
This deal raises the troubling prospect that the Trump and Witkoff households may develop using their stablecoin as an avenue to revenue from overseas corruption.”
There’s additionally concern that Trump may personally profit from regulatory selections that influence crypto markets or corporations related to his enterprise ventures, particularly if the SEC approves a monetary product that legitimizes or will increase demand for property linked to his model.
Trump has actively engaged with the crypto trade since he took workplace. On July 18, he signed the GENIUS Act, the primary main US legislation to supply a transparent regulatory framework for stablecoins.
On June 25, the Trump-appointed director of the Federal Housing Finance Admistration (FHFA), William J. Pulte, issued a directive ordering Fannie Mae and Freddie Mac to arrange proposals to deal with unconverted cryptocurrency holdings as probably qualifying property in single-family mortgage underwriting, with out requiring conversion to US {dollars}.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations — Samson Mow
