The U.S. Securities and Exchange Commission has extended the review period for Trump Media & Technology Group’s proposed Bitcoin ETF, delaying a decision until September 18. The fund, seeking to list the Truth Social Bitcoin ETF on NYSE Arca under the SEC’s commodity-based trust framework, is among multiple crypto-related applications facing prolonged scrutiny. The agency cited the need for additional time to evaluate proposals and address potential issues, though no formal objections to the Trump-backed fund have been raised thus far [1].
The SEC’s move aligns with broader regulatory caution surrounding cryptocurrency products. Alongside the Truth Social ETF, the agency postponed decisions on Grayscale’s Solana Trust and Canary Capital’s Litecoin ETF, with the former now facing a revised deadline of October 10. Commissioner Hester Peirce, known for her pro-crypto stance, recently acknowledged delays in approvals, citing ongoing litigation and complex regulatory considerations [1]. Despite these challenges, the current delays remain relatively swift by historical standards. The first Bitcoin ETF approval, finalized in January 2024, took over a decade to materialize following initial applications in 2013.
The Truth Social Bitcoin ETF, if approved, would mark a unique intersection of political influence and financial innovation. As the first crypto fund tied to a sitting U.S. president’s business ventures, it has drawn scrutiny from Democratic lawmakers. Senators Elizabeth Warren and Jeff Merkley previously raised concerns about a separate Trump-linked crypto deal involving World Liberty Financial, Binance, and a UAE firm, labeling it a “staggering conflict of interest” that could enable profit from foreign corruption [1]. While the ETF itself remains unopposed, critics argue that Trump’s active engagement with the crypto sector—such as signing the GENIUS Act to regulate stablecoins and advocating for cryptocurrency assets in mortgage underwriting—raises ethical questions about regulatory impartiality.
The SEC’s extended review period underscores its cautious approach to balancing innovation with investor protection. The agency’s commodity-based trust framework, used to approve the first Bitcoin ETFs, has emerged as a regulatory pathway for crypto products. However, the lack of clarity on how to categorize crypto assets continues to complicate approvals. Peirce’s recent remarks highlight the agency’s acknowledgment of these complexities, emphasizing the need for patience from stakeholders amid litigation and evolving market dynamics [1].
The delay for the Truth Social ETF also reflects broader geopolitical and economic stakes. As nations explore Bitcoin as a reserve asset, the U.S. faces pressure to maintain its regulatory leadership. However, the SEC’s prolonged review process may signal a more deliberate strategy to ensure alignment with existing financial frameworks. For now, the outcome of the Truth Social ETF remains uncertain, with its approval contingent on resolving broader regulatory uncertainties and political concerns.
Source: [1] [title: Trump’s Truth Social Bitcoin ETF among multiple crypto funds delayed by SEC] [url: https://cointelegraph.com/news/trump-truth-social-bitcoin-etf-delayed-crypto-fund-sec?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound]
