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SEC postpones the decision on Truth Social encryption ETF, following the influence of Trump factors.
[Coin World] The U.S. Securities and Exchange Commission ( SEC ) has postponed its decision on whether to approve the issuance of an exchange-traded fund by Truth Social, which is a social media platform operated by Trump Media & Technology Group. According to documents submitted on Monday, the U.S. Securities and Exchange Commission ( SEC ) has set October 8 as the next deadline for the Truth Social Bitcoin and Ethereum ETF. This delay is routine as the agency weighs dozens of cryptocurrency ETF proposals. Additionally, two other delay applications regarding the CoinShares Litecoin ETF, CoinShares XRP ETF, and 21Shares Core XRP ETF were submitted on Monday, pushing the deadlines to later in October.
"The committee believes that it is appropriate to designate a longer period to take action on the proposed rule changes so that it has sufficient time to consider the proposed rule changes and the questions raised therein," the agency stated in the ETF filings on Truth Social. The Bitcoin and Ethereum ETFs from Truth Social were initially proposed in June and have so far received only one comment urging the agency to deny approval due to President Donald Trump's involvement in Crypto Assets. Trump has earned millions from his family's Crypto Assets ventures, including World Liberty Financial DeFi and stablecoin projects, as well as the issuance of TRUMP and MELANIA memecoins.
Accountable.US is a nonprofit organization dedicated to holding government officials accountable, and its president Caroline Ciccone stated: "If the SEC votes to approve the issuance, it will cause Americans to have doubts about the market and could undermine confidence in the market and the agency itself." "The committee will have to face these questions: Did they approve the rule because it benefits the country? Or because doing so would benefit the president's business?" Truth Social is also in the race for a Bitcoin ETF.
Since Trump took office, the SEC ( has significantly changed its stance on Crypto Assets ETFs over the past year. In July of this year, under new leadership, the agency voted to approve an order allowing authorized participants to create and redeem physical Crypto Assets ETFs. At that time, the agency also allowed applications for listing and trading spot bitcoin and Ethereum ETFs, as well as options for "certain spot bitcoin ETPs". During the Biden administration, following a key court ruling, the SEC ) approved a spot bitcoin ETF and later approved an Ethereum ETF.