Securities and Exchange Commission postpones the decision on Truth Social's Crypto Exchange-Traded Fund, amidst growing political implications.
The Securities and Exchange Commission (SEC) is currently reviewing an application for a Truth Social Bitcoin and Ethereum ETF, which, if approved, would tie the Trump brand to a regulated investment vehicle for the first time. The ETF, filed by Trump Media & Technology Group (TMTG), is designed to appeal to conservative investors seeking politically aligned products[3][5].
The SEC's decision deadline for the ETF has been extended to October 8, 2025, following a series of delays[1][5]. This prolonged review is consistent with the SEC's typical practice of taking up to 270 days to assess crypto ETF applications. The process is also influenced by a broader regulatory pause on multiple crypto ETF applications, including those for Solana, Litecoin, and XRP-based funds[1][5].
The delays have sparked concerns from Democratic lawmakers such as Senators Elizabeth Warren and Jeff Merkley, who have expressed worries about potential conflicts of interest, foreign influence, and Trump’s financial interests[2][3][4]. TMTG's stock has decreased by 50% since January 2025, raising questions about whether the ETF could serve as a lifeline for a struggling business tied to the president[5].
Crypto has become a significant component of the Trump family's portfolio, with the former president's estimated net worth, as of July 2025, standing at $6.4 billion, with nearly $620 million tied to digital assets[5]. This includes DeFi projects and branded meme coins[5].
The SEC's review is also examining complex governance and market risks, particularly the mechanics of staking and in-kind redemptions[1]. The agency's Chair, Paul Atkins, is carefully considering these issues[1].
The ETF's association with Trump has amplified scrutiny, with implications that approval could be seen as politically charged. Despite no formal objections from the SEC, the agency's caution reflects the sensitive intersection of political affiliations and crypto market regulation[2][3].
In summary, the SEC is actively reviewing the Truth Social Bitcoin and Ethereum ETF application but has deliberately delayed its decision to October 8, 2025, amid regulatory challenges and heightened political and conflict-of-interest concerns. This cautious stance is part of a broader SEC approach under Chair Atkins to thoroughly vet crypto ETFs with complex governance and market risks[1][3][5].
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