Bitcoin News Today: SEC Delays Truth Social Bitcoin ETF Ruling to Sept. 18 Amid Scrutiny Under Standard Review

The U.S. Securities and Exchange Commission has delayed its decision on the Truth Social Bitcoin ETF, pushing the expected ruling to September 18, 2024. The extension, announced by the agency, grants the SEC additional time to review the proposed fund under its standard commodity-based trust share framework. The application, submitted by NYSE Arca on behalf of Yorkville America Digital (a partner of Trump Media and Technology Group, or TMTG), was initially subject to an August 4 deadline but has now been extended by 45 days [1].

The SEC’s action aligns with its established review process, which allows up to 240 days for final decisions on ETF proposals. This flexibility includes periodic extensions to ensure thorough evaluation of applications. The Truth Social Bitcoin ETF was filed on June 3, placing the September 18 deadline within the typical timeframe [1]. However, the fund has drawn particular scrutiny due to its ties to TMTG, which is majority-owned by Donald Trump via a trust managed by his son, Donald Trump Jr. Critics have raised concerns about potential conflicts of interest and political influence, though the SEC has not formally objected to the proposal [1].

The delay reflects broader regulatory challenges facing crypto-related ETFs. Despite the approval of the first spot Bitcoin ETF in January 2024, new applications—particularly those involving altcoins or innovative structures like staking—continue to face extended reviews. SEC Commissioner Hester Peirce highlighted in a May 2024 interview that ongoing litigation and jurisdictional complexities contribute to prolonged decision-making timelines [1].

The Truth Social Bitcoin ETF is not the only proposal under review. On the same day the SEC announced the delay, it also extended deadlines for Grayscale’s Solana Trust (now due October 10) and Canary Capital’s Litecoin ETF. These delays underscore the agency’s cautious approach to novel crypto products amid evolving legal and market dynamics [1].

TMTG has submitted multiple crypto ETF applications beyond the Bitcoin-focused proposal. A dual-asset ETF, the Truth Social Bitcoin and Ethereum ETF, was filed on June 24, allocating 75% to Bitcoin and 25% to Ethereum. Another, the Truth Social Crypto Blue Chip ETF, aims to provide exposure to a basket of digital assets, including Bitcoin, Ethereum, Solana, Cronos, and XRP [1]. Beyond ETFs, TMTG has signaled plans for a utility token linked to its Truth Social and Truth+ platforms, alongside AI-related trademark filings.

The SEC’s decision on the Truth Social Bitcoin ETF could set a precedent for politically sensitive crypto projects. If approved, it would mark the first U.S. ETF directly tied to the business interests of a current presidential candidate—a distinction that has intensified regulatory and public interest. The agency’s final ruling, however, remains pending, with no further extensions currently indicated [1].

Source: [1] SEC pushes back decision on Truth Social Bitcoin ETF to September (https://coinmarketcap.com/community/articles/6888658dfb184a125f70cf30/)