The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Truth Social Bitcoin ETF, extending the review period to September 18 instead of the originally scheduled August 4. The fund, supported by Trump Media and Technology Group, seeks approval for listing on the NYSE Arca.

The agency may take up to 270 days to approve or reject applications. The SEC stated that it extended the review period to allow more time to assess the proposal and the questions raised.

Trump's Bitcoin ETF is not the only fund facing delays. The agency has also postponed decisions on Grayscale's Solana Trust until October 10 and the proposed Litecoin ETF from Canary Capital.

Hester Peirce, SEC commissioner nicknamed 'Crypto Mom' for her support of cryptocurrencies, recently urged industry participants to be patient. "People will have to be patient... We have ongoing litigation that we are trying to resolve. We have many other considerations," she said in a Bloomberg interview in May.

However, today's delays seem quite minor when looking at the past. It took more than ten years from the first application for a spot Bitcoin ETF in 2013 before the SEC finally approved it in January 2024.

Questions surrounding Trump's ETF

If approved, the Truth Social Bitcoin ETF will become the first cryptocurrency ETF associated with the business interests of a sitting U.S. president. Although the ETF itself has not raised formal objections from the SEC, other cryptocurrency deals related to Trump have raised questions about ethics, influence, and regulatory impartiality, especially among Democrats.

In May, Senators Elizabeth Warren and Jeff Merkley sent an official letter to the Office of Government Ethics, calling the Trump-related cryptocurrency deal involving World Liberty Financial, Binance, and a firm from the United Arab Emirates an 'astounding conflict of interest.'

They wrote: "This deal raises concerns that the Trump and Witkoff families may expand the use of their stablecoin as a way to profit from foreign corruption."

There is also concern that Trump may personally benefit from regulatory decisions affecting cryptocurrency markets or firms related to his business ventures, especially if the SEC approves a financial product that legitimizes or increases demand for assets tied to his brand.

Active engagement with the crypto industry

Trump has been actively engaging with the crypto industry since taking office. On July 18, he signed the GENIUS Act, the first major U.S. law providing a clear regulatory framework for stablecoins.