SEC Postpones Verdict on Trump-Backed Truth Social Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has extended its decision timeline on the proposed Truth Social Bitcoin ETF, shifting the deadline from August 4 to September 18. Backed by Trump Media and Technology Group, the fund seeks to launch on NYSE Arca under the SEC’s commodity-based trust share structure. The regulator said the additional time is necessary to evaluate the proposal thoroughly and consider any feedback from the public or relevant stakeholders.

This delay falls within the SEC’s legal window of up to 270 days to approve or deny ETF applications. If greenlit, the Truth Social Bitcoin ETF would be the first crypto-based investment product tied directly to a U.S. president’s business ventures, prompting broader concerns about political and ethical implications.

Multiple Crypto ETF Applications Face Delays

The Truth Social ETF is not alone in facing regulatory hesitation. On the same day, the SEC also pushed back decisions on two other cryptocurrency-focused funds: Grayscale’s Solana Trust, now delayed until October 10, and Canary Capital’s proposed Litecoin ETF. These delays underline the agency’s cautious approach as it navigates the intersection of traditional finance, digital assets, and political influence.

SEC Commissioner Hester Peirce, often referred to as “Crypto Mom” for her support of digital assets, has repeatedly urged the crypto community to manage expectations around ETF approvals. “People have to be patient,” she said in a May interview with Bloomberg. “We have some ongoing litigation we’re trying to work through. We have lots of other considerations.”

Despite recent delays, progress is notably quicker than in the past. The SEC took over a decade to approve the first spot Bitcoin ETF, which was finally greenlit in January 2024.

Trump’s Growing Crypto Footprint Raises Red Flags

While the SEC has not raised formal objections to the Truth Social ETF, the Trump family’s expanding involvement in crypto has drawn scrutiny from Democratic lawmakers. 

In May, Senators Elizabeth Warren and Jeff Merkley raised ethical concerns in a letter to the Office of Government Ethics, calling a Trump-linked crypto deal involving World Liberty Financial, Binance, and a UAE firm “a staggering conflict of interest.”

Critics argue that the former president could personally profit from favorable regulatory decisions, particularly if the Truth Social ETF increases demand for digital assets associated with his brand. Trump has become increasingly active in shaping crypto policy, having signed the GENIUS Act into law in July and directed federal housing agencies to accommodate crypto assets in mortgage underwriting criteria.