El Salvador’s legislature has approved major constitutional reforms that will significantly reshape the country’s political structure and electoral timelines.

The new bill, passed on July 31 by 57 lawmakers, enables indefinite presidential re-election, extends the length of presidential terms from five to six years, and removes the need for second-round runoffs in elections.

Crucially, the changes also bring forward the end of President Nayib Bukele’s current term from June 2029 to June 2027. This alignment of presidential and legislative elections means Bukele could now seek another term two years earlier than previously scheduled.

Proponents of the reforms say the moves will enhance institutional stability, reduce election costs, and attract more foreign investment by providing political continuity. They also claimed the overhaul is designed to “stabilize electoral periods” and reduce what they described as a constant state of political campaigning.

Notably, these amendments come just one year after Bukele secured a second term, despite constitutional provisions that had previously barred immediate re-election.

What does this mean for Bitcoin?

President Bukele has positioned El Salvador as a bold experiment in crypto-driven governance. In 2021, the country made history by adopting Bitcoin as legal tender, which drew international praise and skepticism.

Since then, the government has built up a strategic Bitcoin reserve and enabled the use of the crypto for daily transactions, tax payments, and public services.

Considering this, Stacy Herbert, who leads the government’s Bitcoin Office, said the electoral reform would allow the country to continue its current economic trajectory.

According to her:

“The days of chaos, violence, and despair are gone for good. El Salvador will remain on the path to greatness.”

Meanwhile, Max Keiser, a senior advisor on Bitcoin policy, offered a more radical take on the reforms, saying El Salvador would become the Singapore of Central America under Bukele.

He stated:

“El Salvador’s governance model follows Bitcoin. It’s not a ‘Democracy,’ it’s Bitcoin Country. It’s a STARTUP NATION — and as I told The New Yorker 3 yrs ago, Bukele is a cross between JFK & Steve Jobs.”

Mentioned in this article

It only took one day for the Securities and Exchange Commission (SEC) to turn it back into the approval given to the Grayscale Digital Large Cap Fund (GDLC) into an exchange sales fund (ETF) and accidentally halted the release.

On July 1, 2025, the SEC shared a letter indicating its intention to reconsider the recent approvals granted to GDLC and reconsider its intention to convert the fund into an ETF.

The SEC approval of Grayscale ETFs was hailed as a groundbreaking development for a US multi-asset cryptographic ETF. For beginners, grayscale brings a regulatory structure to products that track Bitcoin, Ethereum, and other major tokens by converting multi-asset crypto funds.

The initial approval of regulatory bodies indicates that the authorities are confident in preparing the product for the market. Nevertheless, it has decided to call Rule 431 of the SEC Rules of Practice to consider previous decisions.

Issues like breaking news from yesterday

– Despite initial clearance from SEC, I recently paused with plans to convert Grayscale’s Digital Large Cap Fund to ETF

A temporary pause does not necessarily mean rejection. It triggers more reviews.

– Salazar.ETH (@0xSalazar) July 3, 2025

The GDLC fund holds $755 million in Bitcoin, Ethereum, Solana, XRP and Cardano. According to some analysts, staff at the SEC agency approved the approval, not the commissioner, so it’s a callback.

In a letter to the New York Stock Exchange (NYSE), the SEC said: “This letter is to inform you that you will be reviewing the mandatory action in accordance with Rule 431 of the Committee’s Rule 17 CFR 201.431.”

Furthermore, “According to Rule 431(e) of July 1, 2025, the order will remain until the Commission orders.”

Explore: 20+ next ciphers that will explode in 2025

Altcoin Exposure eliciates rare SEC reviews for grayscale ETF applications

The GDLC fund launched in 2018 includes a variety of cryptocurrencies, with over 91% of its holdings invested in Ethereum and Bitcoin. The rest consists of altcoins such as XRP, Solana, Cardano.

GDLC also includes cryptocurrencies established based on market size and adjusts changes quarterly. If approved, GDLC is a public ETF that allows investors to hold multiple crypto assets in one place.

Historically, such reversals are rare. They often manage ongoing internal discussions about investor protection, regulatory consistency and market stability. Altcoins pose varying degrees of risk, which could have been a trigger for SEC committee members to refuse staff-level approval.

The inclusion of assets like XRP and Solana is still controversial, but it may have sparked concerns about the legal treatment of underlying tokens and the clarity of disclosure as multi-asset products such as Grayscale.

Explore: 10+ crypto tokens that can hit 1000X in 2025

Bloomberg analysts believe the SEC is reevaluating the Grayscale ETF to develop clearer rules

Some analysts, such as Bloomberg’s Eric Barkunass, believe the SEC is reevaluating grayscale ETFs and developing clearer rules before allowing more complicated crypto funds. Baluchnas also speculates that regulators are waiting for a consistent standard for crypto investment products before giving a green signal to GDLC’s ETFs.

The plot becomes thicker. Highest Level of Seconds $ gdlc You cannot start it unless you are notified otherwise. I don’t know why, there is no information other than this letter. My guess: They want to issue Crypto ETP list criteria before the ’33 ACT Spot ETFs make it to the market with these other coins. It’s highly likely… https://t.co/za7ryk1o0e

– Eric Balchunas (@ericbalchunas) July 2, 2025

Explore: Top Solanamemme Coins to purchase in July 2025

Why you can trust 99 Bitcoin?

Over 10 years

Founded in 2013, 99 Bitcoin team members have been experts in crypto since the early days of Bitcoin.

90 hours+

Weekly research

100k+

Monthly Readers

50+

Expert Contributors

2000+

Crypto project reviewed

Follow 99 Bitcoin on Google News Feed

Provide the latest updates, trends and insights directly to your fingertips. Subscribe now!

Subscribe now