SEC Delays Crypto ETF Decisions, Awaiting Decisions on Truth Social and Grayscale Investments
The U.S. Securities and Exchange Commission (SEC) has extended the review period for two highly anticipated cryptocurrency exchange-traded funds (ETFs). The Truth Social Bitcoin ETF and Grayscale's Solana ETF have been given new deadlines of September 18, 2025, and October 10, 2025, respectively [2][4].
The regulatory delays come amidst growing political scrutiny and regulatory uncertainty surrounding crypto ETFs. The SEC's cautious stance is evident despite recent moves toward crypto-friendly policies, such as the approval of in-kind redemptions for spot Bitcoin and Ethereum ETFs [3].
The SEC's extended review period for the Truth Social Bitcoin ETF is due to the need for "sufficient time to consider the proposed rule change and the issues raised therein," likely involving the fund's treatment of staking mechanisms and in-kind redemptions [4]. Grayscale disputes the extended timeline, arguing that after 240 days, their Solana ETF conversion should be considered automatically approved under Section 19b of the Exchange Act; however, the SEC maintains its position requiring more time for comprehensive evaluation [4].
The SEC's regulatory environment is evolving. The SEC recently set new crypto ETF listing standards that could enable a dozen major tokens to qualify automatically if futures contracts have traded on designated markets for six months [1]. However, this framework mainly applies to futures-based ETFs, while spot-based products and certain novel offerings like those linked to Truth Social and Solana are still subject to detailed scrutiny and delays [1][2].
In the meantime, the SEC is reviewing a record number of 72 crypto ETF applications, according to data from Bloomberg ETF analyst Eric Balchunas. New filings involving altcoins like Solana, Litecoin, and meme tokens like Dogecoin are flooding in [5].
The Truth Social Bitcoin ETF is directly tied to the business interests of former U.S. President Donald Trump, who is the majority stakeholder in Trump Media & Technology Group (TMTG) [6]. TMTG has also filed for a Truth Social Bitcoin and Ethereum ETF, and a Crypto Blue Chip ETF [7].
Yorkville America Digital will handle custody for the assets in the Truth Social Bitcoin ETF [8]. If approved, the Truth Social Bitcoin ETF will list the fund under the agency's commodity-based trust framework and issue shares in blocks of 10,000 through authorized participants [8][9].
The SEC's decision on these ETFs will provide insights into the regulatory landscape for cryptocurrency investments in the United States. Senators Elizabeth Warren and Jeff Merkley have already raised concerns about potential conflicts of interest in Trump-linked crypto deals [10].
This situation illustrates the SEC’s cautious but gradually shifting stance on crypto ETFs, balancing innovation with investor protection and regulatory oversight.
References:
- SEC Adopts New Crypto ETF Listing Standards
- SEC Delays Decision on Truth Social Bitcoin ETF
- SEC Approves In-Kind Redemptions for Spot Bitcoin and Ethereum ETFs
- Grayscale Disputes SEC's Extended Review Period for Solana ETF
- Bloomberg ETF Analyst: SEC Reviewing Record Number of Crypto ETF Applications
- Truth Social Bitcoin ETF Tied to Former U.S. President Donald Trump's Business Interests
- TMTG Files for Multiple Digital Asset ETFs
- Yorkville America Digital to Handle Custody for Truth Social Bitcoin ETF Assets
- Truth Social Bitcoin ETF to List Under Commodity-Based Trust Framework
- Senators Raise Concerns About Potential Conflicts of Interest in Trump-Linked Crypto Deals
- After a rigorous review period extension, the Securities and Exchange Commission (SEC) is examining the Truth Social Bitcoin ETF, given its treatment of staking mechanisms and in-kind redemptions.
- Grayscale's Solana ETF, on the other hand, is facing a longer timeline due to the SEC's request for more time to evaluate its conversion, despite Grayscale's assertion that the extended period is unnecessary under Section 19b of the Exchange Act.
- In light of these regulatory delays, the SEC's cautious stance on crypto Exchange-Traded Funds (ETFs) is evident, particularly in the case of spot-based products and innovative offerings like Truth Social and Solana.
- The SEC is currently assessing a record number of 72 crypto ETF applications, with new filings pouring in for altcoins like Solana, Litecoin, and meme tokens like Dogecoin.
- The Truth Social Bitcoin ETF is significant, given its ties to former U.S. President Donald Trump, who is a majority stakeholder in Trump Media & Technology Group (TMTG), which has also filed for Truth Social Bitcoin, Ethereum, and Crypto Blue Chip ETFs.
- If approved, the Truth Social Bitcoin ETF will list under the agency's commodity-based trust framework and issue shares in blocks of 10,000 through authorized participants, with Yorkville America Digital handling the custody of assets.
- The SEC's decisions on these ETFs will offer valuable insights into the regulatory landscape for cryptocurrency investments in the United States, sparking ongoing discussions about potential conflicts of interest, investor protection, and regulatory oversight.
