Bitcoin News Today: SEC Delays Truth Social ETF Decision Until October 8 Amid Trump Crypto Scrutiny

The Securities and Exchange Commission has delayed its decision on Trump Media & Technology Group’s Truth Social Bitcoin and Ethereum ETF applications until October 8, 2025, amid heightened scrutiny over potential conflicts of interest linked to Donald Trump’s extensive involvement in the crypto space[1]. The ETFs, which include a spot Bitcoin fund and a "Blue Chip" portfolio featuring Ethereum, Solana, XRP, and Cronos, were submitted by Yorkville America Digital and are backed by custodian Crypto.com[2]. The funds aim to attract conservative investors seeking politically aligned investment options under the Truth Social brand.

The SEC’s decision to extend the review period reflects growing concerns about Trump’s expanding $1.2 billion crypto empire and its alignment with regulatory policies that critics argue were shaped by his administration. The Truth Social ETF is seen as one of the most politically sensitive crypto investment products in market history[3]. Democrats on the House Financial Services Committee have accused Trump of creating favorable regulatory conditions and then profiting from them through ventures such as World Liberty Financial and the $TRUMP meme coin[4]. These projects are reported to have generated significant personal wealth for the , raising ethical red flags regarding regulatory fairness.

Trump Media has positioned itself as a major institutional Bitcoin investor, holding approximately 18,430 BTC valued at around $2.1 billion, as well as $300 million in Bitcoin-related options. These holdings account for roughly 40% of the company’s total market capitalization and place it as the sixth-largest corporate Bitcoin holder globally, surpassing Tesla and Coinbase[5]. Additionally, Trump’s personal crypto assets include $430 million across various wallets and $6.6 million earned from NFT collections.

The timing of Trump’s crypto accumulation has raised questions, particularly given the pro-crypto regulatory reforms implemented during his administration. This includes appointing crypto-friendly officials to the SEC, pardoning Silk Road founder Ross Ulbricht, and signing the GENIUS Act into law. Recent government actions, such as the release of a 166-page roadmap for U.S. digital asset leadership, further underscore the administration’s alignment with the crypto industry[6].

The Truth Social ETF now faces an increasingly competitive market dominated by Wall Street firms like BlackRock and Fidelity, which collectively manage over $130 billion in Bitcoin ETF assets. BlackRock’s iShares Bitcoin Trust alone holds $60 billion in assets, setting a high bar for new entrants in terms of both capital and operational efficiency. Bloomberg Intelligence senior ETF analyst Eric Balchunas has noted that the Truth Social ETF lacks clarity on key details such as fee structures and ticker symbols, making it difficult to assess its competitive positioning[7].

Critics also highlight the underperformance of Trump Media shares compared to Bitcoin’s six-month gains. While Bitcoin rose by 10.6%, TMTG shares fell by 47% over the same period, casting doubt on the effectiveness of corporate Bitcoin treasury strategies. The company’s shares have also drawn attention due to price fluctuations linked to social media posts on Truth Social, which have historically driven short-term price surges[8].

The broader crypto industry has become a key financial supporter of Trump’s political action committee, MAGA Inc, with over $26 million in donations from major crypto firms and investors such as Blockchain.com, Marc Andreessen, and Gemini Trust. This financial backing raises further questions about the influence of crypto interests on policy decisions[9].

As the SEC’s October 8 decision date approaches, the outcome will determine whether the Truth Social ETF can move forward amid ongoing ethical and regulatory debates. The delay underscores the complexity of balancing financial innovation with accountability, especially in a landscape where political and personal interests intersect with market dynamics.

Sources:

[1] https://cryptonews.com/news/sec-delays-truth-social-crypto-etf-decision-amid-trump-financial-interest-scrutiny/