Summary of this article
SEC delays key crypto ETF rulings again.
Illinois passes strong consumer-focused crypto laws.
South Korea halts crypto lending until regulated.
The US Securities and Exchange Commission (SEC) has postponed its rulings on a number of crypto exchange-traded funds, including a Truth Social Bitcoin and Ethereum ETF, two Solana ETFs by 21Shares and Bitwise, and the 21Shares Core XRP Trust. These deadlines have now been rescheduled to October 2025.
According to Cointelegraph, the SEC filing shows the new review dates as October 08 for the Truth Social ETF, October 16 for the Solana ETFs, and October 19 for the XRP Trust. The Truth Social ETF, linked to Donald Trump's platform, is designed as a commodity-based trust that directly holds Bitcoin and Ether. The Solana and XRP products also seek to provide direct exposure to these tokens through regulated funds.
Such delays are not unusual. Over the past months, the SEC has repeatedly extended its deadlines on crypto ETF applications, including those for Litecoin and Dogecoin products. Many of these filings now face decisions in October, which could be a significant month for altcoin-focused ETFs.
Analysts note that, as stated by Cointelegraph, the SEC tends to take the full review time to evaluate risks and solicit feedback before approving or denying an application. While the market holds its breath for these rulings, classic crypto ETFs just keep on expanding. BlackRock's iShares Bitcoin Trust has already surpassed $87 billion in assets under management, demonstrating how institutional demand for crypto is still robust despite regulatory holdups.
Illinois Governor Signs Two New Crypto Bills With Consumer Protections
Illinois Governor J.B. Pritzker criticised US President Donald Trump for letting what the "crypto bros" shape federal crypto policy while announcing two new crypto bills. According to Cointelegraph, he said that Illinois will not allow exploitative practices to continue.
The Digital Assets and Consumer Protection Act (SB 1797) gives the Illinois' Department of Financial and Professional Regulation the power to oversee crypto exchanges and other businesses. These firms must maintain proper reserves, follow cybersecurity rules, protect investors from fraud, and provide clear information to customers, similar to what is required in traditional financial services.
The second law, called the Digital Asset Kiosk Act (SB 2319), focuses on crypto ATMs and kiosks. Operators now have to register with the state and give refunds if new users are scammed. The law also limits fees to 18 per cent and sets a daily transaction cap of $2,500 for new customers. State Representative Edgar Gonzalez Jr. said that people deserve consistent safeguards no matter what financial service they use.
Data showed that in 2024, Illinois residents lost about $272 million to crypto fraud, making it the 5th highest in the United States. By introducing these laws, the state is aiming towards reducing such risks and set a stronger framework for digital assets. Illinois had also nixed a proposal to establish a strategic Bitcoin reserve earlier this year, indicating a guarded tack towards the use of cryptocurrency.
South Korea Orders Halt to New Crypto Lending Until Rules Are Set
South Korea's Financial Services Commission (FSC) has asked cryptocurrency exchanges to stop offering new crypto lending services. The order comes after rapid growth in lending platforms led to forced liquidations for thousands of users.
According to Cointelegraph, the FSC said that no new lending products should be launched until detailed rules are released. Existing lending contracts, including repayments and extensions, will be allowed to continue. The regulator explained that it is working with the Financial Supervisory Service to design guidelines covering leverage limits, customer eligibility, and risk disclosures. Exchanges that do not comply with the suspension may face inspections and enforcement action.
Concerns grew after one exchange drew nearly 27,600 users within a month of launching a lending service, handling about 1.5 trillion won, or $1.1 billion, in loan volume. Around 3,600 of these customers were liquidated after collateral values dropped sharply. There were also signs that lending in stablecoins such as USDT put selling pressure on the token, causing price fluctuations on local platforms.
Crypto lending in South Korea has operated without clear regulation. The FSC is likely to issue clear guidelines in the months ahead, says Cointelegraph, providing exchanges and investors with an enhanced level of security.
