SEC Delays Truth Social Bitcoin ETF Decision to Sept. 18 Amid Scrutiny
The US Securities and Exchange Commission (SEC) has delayed its decision on the Truth Social Bitcoin ETF until September 18...
Quick overview
- The SEC has postponed its decision on the Truth Social Bitcoin ETF until September 18, extending the review period by 45 days.
- The application is under scrutiny due to Trump Media's political connections, as Donald Trump is the majority shareholder.
- In addition to the Bitcoin ETF, Trump Media is developing two more ETFs and a utility token.
- The SEC's hesitation reflects broader regulatory challenges in the cryptocurrency space.
The US Securities and Exchange Commission (SEC) has delayed its decision on the Truth Social Bitcoin ETF until September 18, extending the review period by 45 days. The proposal, filed by NYSE Arca on behalf of Yorkville America Digital, is notable because of its partnership with Trump Media and Technology Group (TMTG)—a company in which Donald Trump is the majority shareholder through a trust managed by his son.
Originally set for an August 4 decision, the extension is within standard SEC procedures. By law, the SEC has up to 240 days to review any exchange-traded fund application under its commodity-based trust share framework. The Truth Social ETF was filed on June 3 and is still in the early stages of this window.
The Commission said the delay would allow more time to review the proposal and consider public comment. No formal objections have been raised, but political concerns tied to TMTG’s leadership have drawn more public attention.
Political Ties and Regulatory Concerns
If approved, this would be the first crypto-related fund tied to a U.S. presidential candidate’s business interests. Trump’s involvement in TMTG makes this application political sensitive especially as he runs for the 2024 U.S. Presidential Election.
While delays in crypto ETF reviews are common, this one is special because of:
- Trump’s majority ownership in TMTG
- Conflicts of interest
- Growing political implications around cryptocurrency regulation
The SEC is hesitant because of broader challenges in regulating crypto ETFs. Although spot Bitcoin ETFs were approved earlier this year, products involving altcoins or complex structures like staking are still under intense scrutiny.
Trump Media Expands Crypto Footprint
TMTG is not stopping with one product. The company has filed two more ETFs:
- Truth Social Bitcoin and Ethereum ETF
Filed on June 24, this dual-asset trust proposes a 75% allocation to Bitcoin and 25% to Ethereum. Foris DAX Trust Company, affiliated with Crypto.com, is the custodian. - Truth Social Crypto Blue Chip ETF
This diversified fund will include Bitcoin, Ethereum, Solana, Cronos, and XRP, offering broader exposure to top digital assets.
In addition to ETFs, TMTG has filed two AI-related trademarks and is preparing to launch a utility token integrated with its Truth Social and Truth+ platforms, so it’s clear they are deepening their investment in blockchain and digital assets.
Summary Bullet Points:
- SEC delays Truth Social Bitcoin ETF decision to Sept. 18
- Trump Media’s political links add scrutiny to the application
- Two additional ETFs and a utility token are in development
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