SEC Delays Decision on Truth Social ETFs Amid Political Scrutiny

The U.S. SEC has extended its review period for several high-profile cryptocurrency ETFs, including the Truth Social Bitcoin and Ethereum ETF tied to President Donald Trump’s media empire. The delay pushes the decision deadline to October 8, 2025, marking the first extension since NYSE Arca filed the application in June.

While the SEC regularly postpones rulings on crypto-related ETFs, this case is far from routine. The proposed Truth Social ETF carries significant political weight, with critics raising concerns over conflicts of interest given Trump’s 52% stake in Trump Media & Technology Group (TMTG) and his family’s growing crypto footprint.

A Politically Charged Delay

Watchdog group Accountable.US submitted the sole public comment on the application, urging the SEC to reject it outright. The group cited TMTG’s shaky financials, just $821,200 in Q1 revenue against a $5 billion valuation and flagged concerns about the proposed custodian, Foris DAX (a Crypto.com subsidiary), which has faced hundreds of consumer complaints.

“The SEC must deny this proposed rule,” said Caroline Ciccone, president of Accountable.US. “If the SEC approves the launch, it risks undermining public confidence in both the markets and the agency itself.”

The ETF would operate as a commodity-based trust, holding Bitcoin (BTC) and Ethereum (ETH) directly and issuing shares backed by those assets. While structurally similar to existing spot crypto ETFs, the Truth Social branding and Trump’s personal financial ties have put this application under a brighter spotlight.

Trump’s Expanding Crypto Footprint

According to the Bloomberg Billionaires Index, Trump’s net worth remains around $6.4 billion, with nearly $620 million tied to digital assets — from DeFi projects to branded meme coins. With TMTG’s stock down nearly 50% since January, critics argue that an ETF approval could serve as a financial lifeline for the company.

The timing is especially sensitive, as the decision will land in the thick of the U.S. presidential campaign cycle, intensifying scrutiny over whether the SEC can remain impartial.

October: A Pivotal Month for Crypto ETFs

The Truth Social ETF is not the only product awaiting review. The SEC also delayed decisions on:

• 21Shares’ and Bitwise’s Solana ETFs (deadline October 16)
• 21Shares Core XRP Trust (deadline October 19)

These products join a wave of crypto ETF filings clustered for resolution this fall. In March, the SEC also delayed rulings on applications tied to XRP, Litecoin, and Dogecoin, underscoring how October could become a defining month for U.S. crypto markets.

A Balancing Act for the SEC

The SEC faces a dilemma: approving the Truth Social ETF could spark accusations of favoritism toward a sitting president’s business interests, while rejection could trigger charges of political bias.

At the same time, the agency’s stance on crypto ETFs has softened in recent years. In July 2025, the SEC approved rule changes allowing in-kind creations and redemptions for crypto ETFs, a significant shift from the Biden-era SEC, which only moved on spot Bitcoin and Ethereum ETFs after court mandates.

As critics and supporters wait for October, the decision on the Truth Social ETF could become a test case not only for crypto regulation, but for the SEC’s ability to navigate the increasingly blurred line between finance and politics.