The U.S. Securities and Exchange Commission (SEC) has postponed its decisions on two significant cryptocurrency ETF proposals until late 2025, underscoring ongoing regulatory caution in the evolving crypto market. The Truth Social Bitcoin ETF, linked to Donald Trump’s media platform, now faces a ruling by September 18, 2025, while Grayscale’s Solana ETF conversion application is deferred until October 10, 2025. The SEC cited the need for additional time to evaluate the implications of these products and associated rule changes, reflecting a broader pattern of delayed approvals for crypto-based funds [1].
The Truth Social Bitcoin ETF, filed in June 2025, has drawn attention for its political ties to Trump’s affiliated entities and its branding around “digital asset freedom” and “American financial sovereignty.” Critics argue the fund’s alignment with Trump’s political influence could complicate regulatory scrutiny, while supporters frame it as a novel convergence of finance and political engagement. The SEC’s reluctance to expedite politically sensitive proposals highlights the agency’s balancing act between fostering innovation and mitigating perceived risks [1].
Grayscale’s Solana ETF, in contrast, follows a precedent established by its successful Bitcoin Trust conversion. The firm’s existing Solana Trust, operational since 2021, has gained traction amid growing institutional interest in non-Ethereum Layer 1 assets. However, Solana’s network structure—criticized for centralization concerns due to a limited validator set—may prompt the SEC to scrutinize investor protection measures more closely. The agency’s extended timeline for Solana underscores its methodical approach to assessing technical and governance complexities in altcoin products [1].
The delays align with the SEC’s broader regulatory strategy under Chair Paul Atkins, a crypto proponent, who has faced calls to streamline approval processes. Despite recent approvals of spot Bitcoin ETFs and a shift in leadership, the SEC remains constrained by the 1934 Securities Exchange Act, which allows up to 180 days for rule-change reviews, with further extensions possible. This legal framework enables the agency to gather feedback and assess market stability risks, contributing to prolonged decision-making cycles [1].
Market reactions to the delays have been muted, with Bitcoin and Solana prices remaining relatively flat. TRUTH, a token tied to the Truth Social ecosystem, dipped 2.3% as investors speculated on the implications for the Truth+ initiative. Grayscale’s legal team expressed confidence in the long-term viability of its filing, while industry groups, such as the Digital Chamber of Commerce, reiterated concerns about regulatory delays stifling U.S. innovation [1].
The SEC’s latest moves highlight the agency’s dual role as both a gatekeeper and a regulator in a rapidly expanding market. While the approval of spot Bitcoin ETFs signals growing acceptance of crypto assets, the cautious handling of politically charged and technically complex proposals reinforces the SEC’s prioritization of risk management over rapid innovation. With multiple crypto ETF applications pending, including multi-asset and in-kind redemption models, the regulatory landscape remains fluid, shaped by legal constraints and evolving market demands [1].
Source: [1] SEC Delays Truth Social Bitcoin ETF and Grayscale Solana Decision to Fall 2025 (https://coinmarketcap.com/community/articles/6888a62324f71e06f6ae53c3/)
