SEC Postpones Decision on Truth Social Bitcoin ETF Until September: What Crypto Investors Should Know

SEC Extends Review Period for Truth Social Bitcoin ETF Application

The United States Securities and Exchange Commission (SEC) has prolonged its decision on the proposed Truth Social Bitcoin ETF, pushing the timeline back to at least September 18, 2024. Originally scheduled for August 4, this 45-day extension marks the latest development in the regulatory journey for cryptocurrency ETFs in the U.S. NYSE Arca submitted the application on behalf of Yorkville America Digital, an asset manager collaborating closely with Trump Media & Technology Group (TMTG).

Understanding the SEC Review Timeline for Bitcoin ETFs

While some market participants hoped for a faster approval process, these types of delays are standard for SEC-regulated exchange-traded funds based on digital assets. The SEC is permitted up to 240 days from the initial filing to make a final determination, with the option to grant multiple extensions along the way. The Truth Social Bitcoin ETF, filed on June 3, is following this established review protocol.

The extended timeline allows the Commission to thoroughly assess the application's compliance with commodity-based trust share requirements. According to the SEC, additional time is needed to consider complex market issues and any concerns submitted during the public commentary period. Although formal objections specific to the investment product have not emerged, critics are closely watching the ETF due to its affiliation with Trump Media and potential concerns about political influence and conflicts of interest within the cryptocurrency ecosystem.

Potential Impact: Crypto ETF Linked to Political Figures

Should the SEC approve the Truth Social Bitcoin ETF, it would be the first cryptocurrency-oriented exchange-traded product directly associated with a major U.S. presidential candidate’s business interests. Notably, former President Donald Trump holds a controlling stake in TMTG through a trust overseen by his son, Donald Trump Jr. This unprecedented positioning could set a significant precedent for future crypto investment products tied to high-profile individuals.

Delays Affect More Than One Crypto ETF

The Truth Social Bitcoin ETF is not alone in experiencing postponements. On the same day as the recent announcement, the SEC also extended its review period for Grayscale’s planned Solana Trust, now expected to receive a decision by October 10. Similarly, the Canary Capital Litecoin ETF is facing regulatory delays. These setbacks highlight the complex and evolving regulatory landscape that emerging digital asset investment products must navigate in the United States.

Why Are Cryptocurrency ETFs Facing Regulatory Delays?

Despite a surge in interest for exchange-traded funds anchored in major cryptocurrencies—particularly after the landmark approval of the spot Bitcoin ETF in January 2024—regulatory hurdles remain for newer, more innovative products. ETF proposals that include altcoins, staking, or multi-asset structures are particularly scrutinized due to their novelty and potential impact on investor protection and market oversight.

SEC Commissioner Hester Peirce, widely known as “Crypto Mom” for her supportive stance on digital assets, addressed these regulatory concerns in a recent Bloomberg interview. She explained, “We have some ongoing litigation we’re trying to work through,” emphasizing that internal discussions and overlapping jurisdictional issues frequently contribute to extended review periods for crypto ETFs.

Trump Media Expands Its Crypto Ambitions

Beyond its flagship Bitcoin-only fund, Trump Media & Technology Group has filed two additional cryptocurrency ETF proposals. The first, the Truth Social Bitcoin and Ethereum ETF, was submitted on June 24 and is designed as a dual-asset trust holding 75% Bitcoin and 25% Ethereum, with Foris DAX Trust Company—a subsidiary of Crypto.com—serving as the custodian. The second project, the Truth Social Crypto Blue Chip ETF, aims to deliver diversified exposure to leading digital assets, including Bitcoin, Ethereum, Solana, Cronos, and XRP.

In addition to its growing list of ETF initiatives, TMTG is reportedly preparing to launch a utility token for the Truth Social and Truth+ platforms. The company has also recently filed trademark applications related to artificial intelligence, signaling broader ambitions at the intersection of blockchain technology and next-generation digital infrastructure.

With regulatory decisions looming, the next few months will prove pivotal for the future of crypto ETFs and institutional investment in digital assets, setting the tone for how innovative products will enter the mainstream financial ecosystem.