The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the proposed Truth Social Bitcoin ETF, extending the review deadline to September 18, 2025.
Initially set for August 4, the ETF, backed by Trump Media & Technology Group, parent company of Truth Social, has attracted attention for both its crypto potential and its close ties to President Donald Trump.
The SEC cited a need for additional time to assess the regulatory and market implications of the ETF. While the agency is authorized to take up to 270 days to make a final decision, the Truth Social ETF joins a growing list of delayed crypto fund applications, including Grayscale’s Solana Trust and Canary Capital’s Litecoin ETF.
At the time of writing, the Bitcoin price trades at $117,500 with sideways movement on low timeframes.
Political Controversy Meets Crypto Regulation
The Truth Social ETF has become a lightning rod for political scrutiny. In May, Senators Elizabeth Warren and Jeff Merkley raised alarms over Trump-linked crypto initiatives, warning of potential conflicts of interest and foreign influence.
These concerns come amid a broader debate on how political affiliations may sway digital asset markets.
Despite no formal objections from the SEC, the delay underscores the agency’s caution in evaluating crypto assets, especially those entangled with political brands.
Meanwhile, President Trump has leaned further into pro-crypto rhetoric, recently signing the GENIUS Act, the first federal legislation to regulate stablecoins. He also appointed William J. Pulte to lead efforts integrating crypto assets into the U.S. mortgage system.
Delay Opens Doors for Fintech Startups
While regulatory holdups frustrate major players, they create room for fintech startups to innovate. Startups are increasingly exploring futures-based ETFs, multi-asset baskets, and altcoin-backed funds to navigate the SEC’s cautious stance.
The Commission has shown more willingness to approve products with clearer legal footing, like Ethereum futures ETFs.
This window of regulatory uncertainty could be a strategic advantage for agile startups willing to pivot quickly and develop investor-friendly, compliant crypto products.
As the Truth Social Bitcoin ETF awaits a ruling, the intersection of politics, innovation, and regulation continues to put growth pressure in the crypto ETF space.
Cover image from Unsplash, BTCUSD chart from Tradingview
