- SEC delays decision on Truth Social Bitcoin ETF, extending review to September 18.
- The decision follows other delayed crypto fund approvals, including Grayscale’s Solana Trust and Canary Capital’s Litecoin ETF.
- Trump Media and Technology Group seeks approval for the Truth Social Bitcoin ETF, marking a historic first for a crypto ETF linked to a sitting U.S. president’s business.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the proposed Truth Social Bitcoin ETF, extending the review period to September 18, pushing back from the original August 4 deadline. The ETF, backed by Trump Media and Technology Group, seeks approval to list on the NYSE Arca exchange under the SEC’s commodity-based trust share framework.
The SEC explained the delay was necessary to allow additional time for the agency to evaluate the proposal and address any raised concerns. The review process for ETFs can take up to 270 days for approval or rejection, giving the SEC ample time for a thorough evaluation.
In addition to the Truth Social Bitcoin ETF, the SEC also postponed decisions on other crypto funds, including Grayscale’s Solana Trust, which now has a review deadline of October 10, and Canary Capital’s proposed Litecoin ETF.
Source: SEC.gov
Regulatory caution as crypto fund approvals face delays
The delay is part of a broader trend of slow approval timelines for crypto-related ETFs. Hester Peirce, a SEC commissioner known as “Crypto Mom” for her pro-crypto stance, recently urged stakeholders to be patient as the SEC works through ongoing litigation and other considerations. Despite the delays, the decisions made today are relatively swift compared to previous cases. It took over a decade for the SEC to approve its first spot Bitcoin ETF in January 2024.
The Truth Social Bitcoin ETF would be historic as the first crypto fund linked to a sitting U.S. president’s business. Despite SEC’s careful review, other crypto ventures linked to Trump have raised questions among critics, particularly regarding ethics and regulatory impartiality.
Trump-Linked crypto deals spark ethical concerns
If approved, the Truth Social Bitcoin ETF would be a significant milestone, as it ties a crypto ETF directly to the interests of a sitting U.S. president. However, it has raised concerns among Democrats and regulators, who have questioned potential conflicts of interest and regulatory favoritism.
In May, Senators Elizabeth Warren and Jeff Merkley formally urged the Office of Government Ethics to investigate a Trump-related crypto deal involving World Liberty Financial, Binance, and a UAE firm, citing potential conflicts with foreign interests. They warned that the deal could allow the Trump and Witkoff families to profit from foreign corruption through their stablecoin ventures.
The approval of the Truth Social Bitcoin ETF could legitimize or increase demand for assets linked to Trump’s brand, leading to concerns over the potential for Trump to personally benefit from SEC’s decisions that impact the crypto market.
Trump’s continued influence in crypto regulation
Beyond the Truth Social Bitcoin ETF, Trump has continued to engage actively with the crypto industry since his presidency. Notably, Trump signed the GENIUS Act on July 18, providing the first major U.S. law offering a clear regulatory framework for stablecoins.
Additionally, Trump-appointed Federal Housing Finance Administration (FHFA) director William J. Pulte issued a directive in June for Fannie Mae and Freddie Mac to treat cryptocurrency holdings as potentially qualifying assets in single-family mortgage underwriting, without the need to convert them to U.S. dollars.
