Regulatory Gray Area Looms for First U.S. Trump-Linked Crypto ETF

The Depository Trust & Clearing Corporation (DTCC) has listed the Canary Capital Trump Coin ETF under the ticker symbol TRPC, marking a procedural step toward potential trading but not regulatory approval. The ETF, which tracks the Solana-based TRUMP token inspired by former U.S. President Donald Trump, was filed by Canary Capital Group in August under the Securities Act of 1933. This structure differs from prior crypto-ETF proposals, which often used offshore entities or U.S. Treasury holdings as buffers. By directly linking to the TRUMP token, the fund exposes investors to its full volatility, a feature analysts caution could heighten regulatory scrutiny.

The DTCC listing confirms technical readiness for clearing and settlement but does not guarantee U.S. Securities and Exchange Commission (SEC) approval. Bloomberg ETF analyst Eric Balchunas noted that the SEC typically requires a six-month futures market for an asset before considering a spot ETF. No regulated futures contracts for the TRUMP token currently exist, placing the proposal in a regulatory gray area. Balchunas suggested the ETF might eventually be structured under the Investment Company Act of 1940 as a diversified product rather than a standalone offering.

The TRUMP token itself has faced significant price challenges. After peaking at $75 in January 2025, its value has plummeted by roughly 90%, trading near $8 as of October 2025. The token's issuer, Fight Fight Fight LLC, led by Trump supporter Bill Zanker, is exploring a $200 million to $1 billion fundraising initiative to build a digital asset treasury for token repurchases. However, the plan remains in early negotiations, with no firm commitments secured. Analysts remain skeptical about the token's recovery, citing weak market sentiment and ongoing price declines exceeding 10% over the past month.

Market observers highlight the broader implications of the DTCC listing. The move signals growing institutional interest in politically themed meme coins, a category that has attracted $70+ million in development capital in 2025. Similar to the recent 21Shares DOGE ETF listing, the TRPC ETF reflects efforts to integrate meme coins into traditional finance infrastructure. If approved, the TRPC would become the first U.S. ETF directly tied to a sitting president's cryptocurrency project. However, regulatory hurdles persist, as the SEC has previously rejected spot ETFs for lacking adequate investor protections.

Technical analysis of the TRUMP token suggests potential for a short-term rally. TradingView analyst Mr. Albert noted consolidation near $7.00 support, with a breakout above $7.80–$8.00 potentially triggering upward momentum. Derivatives activity has also surged, with Coinglass reporting a 6% increase in open interest to $350.91 million. Nevertheless, experts caution that meme coins remain highly speculative, with prices susceptible to social media sentiment and political developments.

The regulatory landscape has evolved under the Trump administration, with the SEC reclassifying meme coins as commodities rather than securities in February 2025. This shift removed direct oversight but introduced new challenges for ETF approvals. Canary Capital's filing emphasizes full token backing through regulated custodial reserves, distinguishing it from earlier proposals. The broader crypto-ETF market, now valued at $5.95 billion globally, continues to attract institutional capital, though political branding may complicate adoption for conservative investors.

Source: [1] The Crypto Basic (https://thecryptobasic.com/2025/10/09/canary-trump-coin-etf-secures-dtcc-listing-is-sec-approval-underway/)

[2] CoinCentral (https://coincentral.com/trump-coin-etf-listed-on-dtcc-as-canary-awaits-sec-approval/)

[3] BanklessTimes (https://www.banklesstimes.com/articles/2025/10/09/canary-trump-coin-etf-listed-on-dtcc/)

[4] Blockonomi (https://blockonomi.com/trump-coin-etf-listed-on-dtcc-platform-as-political-memes-enter-mainstream-finance/)

[5] Coingape (https://coingape.com/canary-capital-trump-coin-etf-secures-dtcc-listing-as-expert-predicts-price-breakout/)

[6] FXLeaders (https://www.fxleaders.com/news/2025/10/09/trump-coin-etf-listed-on-dtcc-as-analysts-eye-breakout-above-8/)

[7] HokaNews (https://www.hokanews.com/2025/10/trump-coin-etf-hits-dtcc-investors-eye.html)