Bitcoin News Today: SEC extends Truth Social Bitcoin ETF review to September 18 citing regulatory delays

The U.S. Securities and Exchange Commission (SEC) has extended its review period for the Truth Social Bitcoin ETF, a proposal backed by Trump Media and Technology Group, pushing the decision deadline from August 4 to September 18 [1]. The fund, which seeks to list on the NYSE Arca under the SEC’s commodity-based trust framework, is one of several crypto-related products facing regulatory delays. Alongside the Truth Social ETF, the SEC postponed decisions on Grayscale’s Solana Trust (now due by October 10) and Canary Capital’s Litecoin ETF application [2]. The agency cited the need for additional time to evaluate proposals and address “issues raised” during the review process.

Commissioner Hester Peirce, a vocal advocate for crypto innovation, emphasized in a May Bloomberg interview that stakeholders should expect slower approvals amid ongoing litigation and broader policy considerations. “People have to be patient… We have some ongoing litigation we’re trying to work through. We have lots of other considerations,” she stated [3]. Despite these delays, the pace of review remains historically swift compared to the over-decade-long approval process for the first U.S. spot Bitcoin ETF, which was finally authorized in January 2024 after initial applications in 2013 [4].

The Truth Social ETF, if approved, would represent a unique intersection of political and financial interests. It is the first crypto ETF explicitly linked to a sitting U.S. president’s business ventures, raising ethical concerns among critics. Democratic senators Elizabeth Warren and Jeff Merkley recently highlighted potential conflicts of interest in a letter to the Office of Government Ethics, criticizing a Trump-linked deal involving World Liberty Financial, Binance, and a United Arab Emirates firm as a “staggering conflict of interest.” They warned of risks where the Trump and Witkoff families could profit from “foreign corruption” through expanded stablecoin usage [5].

These concerns are compounded by broader scrutiny of how regulatory outcomes might benefit Trump’s business interests. Analysts and lawmakers have raised alarms about the possibility of regulatory decisions legitimizing crypto assets tied to his brand, potentially increasing demand and profitability for associated ventures. This scrutiny has intensified since Trump’s recent legislative actions, including the July 18 signing of the GENIUS Act, a landmark law establishing a regulatory framework for stablecoins, and a June 25 directive from his appointed Federal Housing Finance Administration (FHFA) director to consider unconverted cryptocurrency holdings as qualifying assets in mortgage underwriting [6].

The SEC’s cautious approach to crypto ETFs reflects broader challenges in balancing innovation with investor protection. While the agency has approved spot Bitcoin ETFs, its stance on altcoins and politically sensitive proposals remains guarded. The delayed decisions for the Truth Social and other ETFs underscore the SEC’s dual role as both a regulator and a mediator in ongoing legal disputes involving major crypto firms like Grayscale and Binance.

Source: [1] [U.S. Securities and Exchange Commission] [https://sec.gov]

[2] [CoinMarketCap Article] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]

[3] [Bloomberg Interview with Hester Peirce] [https://bloomberg.com]

[4] [CoinMarketCap Historical Context] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]

[5] [U.S. Senate Letter to Office of Government Ethics] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]

[6] [CoinMarketCap Legislative Actions] [https://coinmarketcap.com/community/articles/6887f9bf93529f16716e8dc9/]