Bitcoin News Today: SEC Extends Trump Bitcoin ETF Review to Sept. 18 as Crypto Delays Continue

The U.S. Securities and Exchange Commission (SEC) extended its review of Trump Media and Technology Group’s proposed Truth Social Bitcoin ETF, pushing the decision deadline to Sept. 18 from Aug. 4. The fund, seeking to list on the NYSE Arca under the SEC’s commodity-based trust share framework, is among several crypto-related ETF applications currently facing delays. The agency also postponed decisions on Grayscale’s Solana Trust (now due Oct. 10) and Canary Capital’s Litecoin ETF, citing the need for additional time to evaluate proposals and address outstanding issues. Hester Peirce, the SEC commissioner known for her pro-crypto stance, emphasized in a May Bloomberg interview that applicants should expect slower approvals due to ongoing litigation and other regulatory considerations [1].

The Truth Social Bitcoin ETF, if approved, would be the first crypto fund tied to a sitting U.S. president’s business interests. While the SEC has not formally objected to the ETF itself, broader concerns about ethical conflicts and regulatory impartiality persist. In May, Democratic Senators Elizabeth Warren and Jeff Merkley raised alarms about a Trump-linked crypto deal involving World Liberty Financial, Binance, and a UAE firm, calling it “a staggering conflict of interest.” They argued the arrangement risked enabling foreign corruption and allowing the Trump and Witkoff families to profit from expanded use of a stablecoin connected to their business ventures [1]. Critics also warn that Trump could personally benefit from regulatory actions favoring his crypto assets, particularly if the ETF legitimizes or boosts demand for assets linked to his brand.

The delays reflect the SEC’s cautious approach to crypto products, even as the agency has historically taken years to approve similar applications. The first U.S. spot Bitcoin ETF, approved in January 2024, had been under review since 2013. The current delays, while swift by historical standards, underscore the regulatory body’s heightened scrutiny of crypto projects amid ongoing legal battles and political tensions. Trump’s active engagement with the sector—including signing the GENIUS Act, a landmark stablecoin framework in July, and directing federal housing agencies to consider unconverted crypto as qualifying mortgage assets—has further complicated the regulatory landscape [1].

Analysts note that the SEC’s extended review periods may signal a broader shift in how the agency balances innovation with investor protection. The Trump-backed ETF’s unique political ties amplify scrutiny, as regulators weigh the risks of perceived conflicts of interest against the potential for market expansion. While the SEC’s commodity-based trust framework offers a path for crypto ETFs, the agency’s inconsistent application of standards—particularly in cases involving high-profile figures—raises questions about regulatory neutrality. For now, applicants must navigate a protracted approval process, with Peirce’s warning about patience underscoring the uncertainty [1].

The outcome of the Truth Social Bitcoin ETF review could set a precedent for future crypto funds, particularly regarding the SEC’s tolerance for politically sensitive proposals. However, the ethical debates and regulatory challenges highlighted by this case suggest that the agency will continue to prioritize caution over rapid approvals, at least until its legal and policy frameworks for digital assets are more firmly established.

Source: [1] [Trump’s Truth Social Bitcoin ETF among multiple crypto funds delayed by SEC] [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]