SEC Postpones Decision on Truth Social's Crypto ETF Amidst Emerging Political Sentiments
The Securities and Exchange Commission (SEC) has delayed its decision on the approval of the Truth Social Bitcoin and Ethereum Exchange-Traded Fund (ETF), originally scheduled for August 2025. The decision, now expected on October 8, 2025, comes as the SEC grapples with regulatory complexities and political sensitivities surrounding the product [1][2][3][4][5].
The political context plays a significant role in the SEC's cautious stance. Given Truth Social's association with former President Donald Trump's media venture, the SEC faces a dilemma: approving the ETF could invite accusations of favoritism or conflicts of interest benefiting a sitting or former president's business interests, while rejecting it might provoke claims of political bias against Trump-linked entities [2].
Conflicts of interest concerns have been raised by market watchdogs given Trump Media Technologies Group’s (TMTG) involvement in crypto ventures, including Bitcoin treasury plans and meme coins linked to Trump. The ETF itself, if approved, would put the Trump brand directly into a regulated investment vehicle tied to Bitcoin and Ethereum [3].
TMTG's stock has decreased by 50% since January 2025, raising concerns that the ETF could be a lifeline for a struggling business tied to the president [2]. However, Trump Media’s involvement extends beyond the ETF application. TMTG announced a $2.5 billion Bitcoin treasury plan and has confirmed holding around $2 billion in Bitcoin assets as of mid-2025. They are also expanding into various crypto-related projects such as wallets, utility tokens, mining, and stablecoins [2].
The SEC's delay reflects the need for additional due diligence on market surveillance, custody, and operational mechanisms [4]. It also underscores the broader SEC's caution amid evolving crypto ETF regulatory frameworks and recent policy shifts that have softened attitudes towards crypto ETFs generally, but still require rigorous vetting for politically sensitive cases [2].
The decision on Truth Social’s Bitcoin and Ethereum ETF will be a key litmus test for balancing crypto innovation, regulatory rigor, and political neutrality. The outcome, now expected by early October 2025 [1][2][3][4][5], will likely set a precedent for future approvals of crypto ETFs with political ties.
It's worth noting that the SEC's approach to crypto ETFs has evolved significantly since the Trump administration. In July 2025, the agency approved rule changes for in-kind creations and redemptions for crypto ETFs [6]. Trump's estimated net worth, as of July, is $6.4 billion, with nearly $620 million tied to digital assets [7]. Crypto has become a significant part of the Trump family's portfolio, including DeFi projects and branded meme coins [7].
References: 1. SEC Delays Decision on Truth Social Bitcoin and Ethereum ETF 2. Politics and Crypto Collide in SEC's Decision on Truth Social ETF 3. Truth Social ETF: A Risky Bet on Trump's Digital Future 4. Regulatory Challenges for the Truth Social Bitcoin and Ethereum ETF 5. SEC Delays Trump-Linked Truth Social ETF Decision Until October 6. SEC Approves Rule Changes for Crypto ETFs 7. Trump's Net Worth and Digital Assets
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