The US Securities and Exchange Commission has postponed its decision on whether to approve an exchange-traded fund proposed by Truth Social, a social media platform run by Trump Media & Technology Group.

A new deadline for the Truth Social Bitcoin and Ethereum ETF has been set for October 8.

The SEC also filed routine delays for other cryptocurrency ETF proposals, including the CoinShares Litecoin ETF, CoinShares XRP ETF, 21Shares Core XRP ETF, Canary XRP Trust, Grayscale XRP Trust, and a proposal to allow staking for the 21Shares Core Ethereum ETF, with decisions pushed to later in October.

The agency said it needed more time to consider the proposed rule changes and related issues.

Truth Social’s ETF proposal, first submitted in June, has drawn at least one public comment, which raised concerns about former President Donald Trump’s connections to the cryptocurrency industry.

🔗 Source: The Block

🧠 Food for thought

1️⃣ SEC crypto ETF approvals follow years of systematic rejections

The current Truth Social ETF delays continue a pattern that traces back to 2017, when the SEC first rejected the Winklevoss twins’ Bitcoin ETF application1.

Between 2017 and 2018, the SEC consistently rejected crypto ETF proposals, including nine Bitcoin ETF applications from major firms like ProShares, Direxion, and GraniteShares2.

The agency’s primary concerns centered on market manipulation risks and the lack of regulated derivatives markets with proper surveillance mechanisms1.

This resistance lasted for years, with the SEC arguing that significant Bitcoin markets remained unregulated, making it impossible to establish necessary fraud prevention measures1.

The agency’s historical caution makes the current delays appear routine rather than exceptional, suggesting the SEC continues to apply heightened scrutiny to crypto ETF proposals despite the changing political landscape.

2️⃣ Regulatory environment shifts dramatically under new administration

The SEC’s approach to cryptocurrency has undergone a notable transformation since Trump took office. Trump’s administration enacted several pro-crypto policies, including withdrawing an accounting rule that required banks to treat cryptocurrencies as liabilities3.

The SEC under new leadership has begun reversing the strict enforcement approach of former Chair Gary Gensler, who was known for aggressive actions against crypto companies3.