The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on the proposed Truth Social Bitcoin ETF until September 18.
Extension of ETF Review Period
In response to the need for further evaluation, the SEC has pushed back the decision on the Truth Social Bitcoin ETF from August 4 to September 18. This fund, backed by Trump Media and Technology Group, aims to launch on NYSE Arca under a commodity-based trust share structure. The regulator indicated that more time is necessary to thoroughly assess the proposal and gather feedback from the public and relevant stakeholders.
Other ETF Approval Delays
The Truth Social ETF is not alone in facing delays. On the same day, the SEC also postponed decisions on two other cryptocurrency-focused funds: Grayscale’s Solana Trust, now delayed until October 10, and Canary Capital’s proposed Litecoin ETF. These delays highlight the SEC's cautious approach as it navigates the intersection of traditional finance and digital assets.
Ethical Concerns and Trump's Influence in Crypto
While the SEC has not raised formal objections to the Truth Social ETF, the Trump family's increasing involvement in cryptocurrency has drawn attention from Democratic lawmakers. Senators Elizabeth Warren and Jeff Merkley expressed ethical concerns in a letter to the Office of Government Ethics, describing a Trump-linked crypto deal involving World Liberty Financial as 'a staggering conflict of interest.' Critics argue that the former president could personally profit from favorable regulatory decisions.
The postponement of the decision on the Truth Social Bitcoin ETF reflects the SEC's desire for more thorough consideration of applications, especially in light of political activity and ethical concerns raised by both supporters and opponents.
