SEC Delays Truth Social’s Bitcoin ETF Verdict to September – What’s the Holdup?
The SEC just hit snooze on Truth Social's controversial Bitcoin ETF proposal—kicking the can to September 2025. Here's why Wall Street is rolling its eyes.
Regulatory limbo strikes again
Another day, another delay. The SEC's move follows a predictable pattern of bureaucratic foot-dragging on crypto products—while traditional finance keeps raking in profits from less innovative (but politically safer) instruments.
Truth Social's crypto ambitions
The Trump-linked platform's bid for a Bitcoin ETF adds fresh drama to the ongoing crypto-regulation circus. Will this become a political football as election season heats up? Place your bets.
The waiting game continues
Markets barely blinked at the news—proof that crypto traders now expect regulators to move at glacial speeds. Meanwhile, Bitcoin's price action suggests investors care more about halving cycles than SEC deadlines.
Wake us up when September ends
Until then, enjoy watching legacy finance institutions launch their own crypto products while pretending they 'always believed in blockchain.' The hypocrisy would be amusing if it weren't so profitable.
Is this unusual for a Bitcoin ETF application?
Not particularly. Under current SEC rules, the Commission has up to 240 days from the date of filing to approve or reject an ETF proposal, allowing for multiple extensions along the way.
In this case, the Truth Social bitcoin ETF was filed on June 3, making the September 18 extension part of the standard review process.
The SEC said it needs more time to consider the proposal and any issues raised during the review period. While no formal objections have been noted so far, the fund’s ties to Trump Media have drawn scrutiny from critics concerned about political influence and conflicts of interest.
This ETF, if approved, WOULD be the first cryptocurrency-related exchange-traded product tied directly to the business interests of a current U.S. presidential candidate.
For those unaware, President Donald Trump is the majority owner of TMTG, though his stake is held in a trust managed by his son, Donald Trump Jr.
Truth Social’s Bitcoin ETF is not the only product on hold. On the same day, the SEC also delayed decisions on Grayscale’s proposed Solana Trust, extending its review to October 10. In addition, Canary Capital’s planned Litecoin ETF is facing a similar delay.
Why has the SEC delayed decisions on crypto ETFs?
Even as crypto ETFs have gained popularity since the approval of the first spot Bitcoin ETF in January 2024, new proposals, particularly those involving altcoins and having provisions such as staking, continue to face regulatory headwinds due to their relatively novel structures.
Commissioner Hester Peirce, known for her pro-crypto stance and often referred to as “Crypto Mom,” addressed the delays in a May interview with Bloomberg.
“We have some ongoing litigation we’re trying to work through,” she said, adding that internal discussions and overlapping jurisdictional issues contribute to the lengthy review timelines.
Trump Media goes all in
In addition to its Bitcoin-only ETF, TMTG has submitted two other cryptocurrency ETF proposals.
The second, filed on June 24, is a dual-asset product called the Truth Social Bitcoin and ethereum ETF. Structured as a commodity-based trust, the fund would hold 75% Bitcoin and 25% Ethereum, using Foris DAX Trust Company (a Crypto.com affiliate) as custodian.
The third proposal is the Truth Social Crypto Blue Chip ETF, which would offer exposure to a diversified basket of digital assets, including Bitcoin, Ethereum, Solana, Cronos, and XRP.
Beyond ETFs, Trump Media has recently signaled plans to launch a utility token tied to its Truth Social and Truth+ platforms, and has filed two AI-related trademarks.
