Bitcoin News Today: SEC Delays Trump-Linked Bitcoin and Grayscale Solana ETF Rulings Amid Genius Act Scrutiny

The U.S. Securities and Exchange Commission (SEC) has taken a pivotal step in its ongoing review of cryptocurrency spot ETFs, with two applications now in flux. On July 23, 2025, the SEC postponed its decision on the Truth Social Bitcoin Spot ETF, a product linked to Donald Trump’s social media platform. This move aligns with the agency’s broader scrutiny of crypto-related investment vehicles, which has seen delays and rejections for years. Concurrently, the SEC also delayed a ruling on Grayscale’s Solana Spot ETF, signaling continued caution in approving exposure to altcoins [1].

The Trump-linked ETF, which has drawn significant attention for its political associations, remains under evaluation amid concerns about market volatility and regulatory alignment. The postponement suggests the SEC is prioritizing due diligence, particularly in light of recent legislative developments like the "Genius Act," signed by Trump earlier this month. The bill mandates stablecoins be backed by U.S. Treasury bonds and bans central bank digital currencies (CBDCs), potentially complicating the structure of stablecoin-based ETFs [2].

Meanwhile, the broader crypto ETF landscape is evolving rapidly. The SEC recently approved the conversion of the Bitwise 10 Crypto Index Fund into an ETF, marking the first time a diversified crypto index fund has transitioned to an exchange-traded structure. This ETF includes Bitcoin (BTC), Ethereum (ETH), XRP, and other major tokens, reflecting growing institutional confidence in crypto markets [1]. The approval follows a surge in net inflows for U.S. Bitcoin spot ETFs, which added $73.2 million in the week of July 21–25, while Ethereum spot ETFs attracted $1.846 billion. These figures highlight a shift in capital toward crypto as regulatory clarity improves, though volatility remains a key challenge [1].

The Genius Act’s impact on stablecoin mechanics has also sparked debate. Deutsche Bank analysts suggest the legislation could transform stablecoins into a “new pillar” for U.S. Treasury bonds, with demand projected to reach $1 trillion by 2028 [1]. While the SEC has not explicitly tied its recent Bitwise ETF decision to the Genius Act, the regulatory environment is clearly influenced by overlapping political and market-driven reforms. This interplay underscores the complexity of aligning crypto policies with broader financial system stability goals.

Market reactions to these developments have been mixed. Bitcoin’s price has fluctuated within a $112,000–$120,000 range, with technical indicators showing cautious optimism. Ethereum has outperformed, rising 12% amid strong staking demand, which currently offers an annualized return of 4.2% [1]. Altcoins have also seen a surge, with projects like CFX, ENA, and PENGU posting double-digit gains. Analysts attribute this trend to capital shifting from Bitcoin to altcoins as ETF approvals expand, though the long-term trajectory remains uncertain.

The SEC’s delayed rulings have also intensified lobbying in the crypto sector. Over $11.4 million was spent by 73 firms on federal lobbying related to crypto in the past month, a reflection of stakeholders’ urgency to shape regulatory outcomes. This includes efforts to advocate for ETF approvals and legislative reforms, such as a House proposal to reduce operational costs for physical delivery ETFs by 40% [2]. The lobbying boom highlights the sector’s strategic role in reshaping financial infrastructure policies.

As the SEC continues its review, the interplay between regulatory updates and market dynamics will remain critical. The pending decisions on the Trump-linked and Grayscale Solana ETFs could influence the broader approval landscape, potentially encouraging other asset managers to submit applications. However, the Genius Act’s long-term effects on stablecoin-linked ETFs may redefine risk-return profiles for investors. Market participants are advised to monitor macroeconomic indicators, including Federal Reserve policy and global capital flows, which will remain pivotal to stability [1].

Source: [1] [title1] [url1] https://www.chaincatcher.com/en/article/2193691

[2] [title2] [url2] https://www.mitrade.com/insights/news/live-news/article-3-989837-20250727

[3] [title3] [url3] https://coinbureau.com/newsletters/altcoin-etfs-are-here/