SEC Delays Decision on Truth Social Bitcoin and Ethereum ETF
Oh, here we go again with the U.S. Securities and Exchange Commission (SEC) stirring up the pot! On August 18, the SEC decided to push back its deadline for ruling on the Truth Social Bitcoin and Ethereum ETF until October 8. Now, that might sound like just another day in the office for crypto-related ETFs, but trust me, this one’s a bit of a hot mess. It’s the first delay since NYSE Arca tossed the proposal into the ring back in June, and it has more layers than a cake.
Now, the SEC claims it needs more time to “consider the proposed rule change”, the usual line. But let’s not kid ourselves; there’s a lot more at play here. The fund’s connection to President Donald Trump’s media empire and his family’s crypto ventures makes this one a political hot potato. Can you imagine the headlines if this goes the wrong way?
A Watchdog’s Scathing Critique
Accountable.US, a government watchdog group, wasn’t shy about calling out this proposal. They absolutely roasted it, claiming it could represent an epic conflict of interest-Trump holding 52% of Trump Media & Technology Group (TMTG) and his family diving deeper into crypto. Caroline Ciccone, president of Accountable.US, didn’t mince words either, stating that if the SEC approves this ETF, it could “undermine confidence in the markets and the agency itself.”
But wait, there’s more. The watchdog group also pointed out concerns like the ETF’s custodian, Crypto.com’s subsidiary Foris DAX, citing hundreds of consumer complaints. And don’t even get me started on TMTG’s shaky financials. The company’s Q1 earnings were just $821,200 while being valued at a cool $5 billion. Definitely sounds like a high-risk investment to me.
Trump’s Growing Financial Footprint in Crypto
Let’s talk about Trump’s crypto ventures for a minute. His net worth sits at a solid $6.4 billion, but nearly $620 million of that is now tied up in digital assets. From DeFi projects to meme coins, the Trump family has their fingers all over the crypto pie. So, yeah, a Truth Social ETF linked to Bitcoin and Ethereum could really boost the Trump brand in the world of regulated investments. With TMTG’s stock down 50% since January 2025, you can see why critics think this could be a lifeline for a business that’s not exactly thriving.
The Shifting Regulatory Landscape
To add to the drama, the SEC’s crypto ETF policies have evolved under different administrations. The agency made waves in July 2025 by allowing more complex crypto ETFs to be created, which is a big deal. It’s no longer just about Bitcoin and Ethereum in the ETF game, but this could create a mess for the SEC. If they approve the ETF, it could look like they’re favoring Trump’s business interests. If they reject it, well, accusations of political bias will be flying faster than you can say “cryptocurrency.”
So, in my opinion, the SEC’s decision is going to be a tough one. They’ll have to answer some pretty hard questions: Did they approve it because it’s the best move for the country, or did they do it because it benefits Trump’s crypto empire? Guess we’ll find out soon enough.
Gunel Ismayilova
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