SEC Extends Deadline of Truth Social Bitcoin ETF to September 18

The US Securities and Exchange Commission (SEC) released a notice on Monday, announcing that it has delayed decisions on Truth Social Bitcoin ETFs and Grayscale’s Solana Trust. It has extended the review deadline to September 18. 

SEC Delays Decision on Truth Social Bitcoin ETF

The Truth Social ETF, backed by the Trump Media and Technology Group, seeks SEC approval to be listed on the NYSE Arca Exchange. The fund application was submitted on June 3 and is still in the early stages. 

Originally, the decision-making on Truth Social Bitcoin exchange-traded fund (ETF) was set to release on August 4. However, the SEC delayed the review period by 45 days. The agency said that the extended period will allow them to review the proposal and consider public comments. 

The SEC wrote in the notice, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.” 

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Crypto Ties and Political Concerns Jumble 

President Trump has doubled his wealth in a year with his crypto ties. If the SEC approves the Truth Social ETF, it will become the first crypto-related fund tied to a US president. Many democrats have voiced their concerns. Some crypto experts even said that Trump’s ties with cryptocurrency could cause a conflict of interest. 

Senator Jeff Merkley said, “Allowing Trump to create a Bitcoin ETF is opening the door to abuse of power. He can influence the regulation and then profit from it.”

SEC approved spot Bitcoin ETFs earlier this year, but now it is delaying the decision for the Truth Social ETF. This reflects its hesitation about broader challenges in the crypto regulatory space. 

Additionally, Grayscale’s proposed conversion of its Solana Trust into an ETF is now pushed to October 10 for SEC approval. 

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