The U.S. Securities and Exchange Commission (SEC) has postponed the approval decision for the 'Truth Social Bit Token ETF' pursued by Trump Media & Technology Group until September 18. This decision is aimed at securing more time for the fund's listing review, and is expected to be a process of fully gathering opinions from relevant stakeholders.
The Truth Social Bit Token ETF was officially applied on June 3, targeting listing on the NYSE Arca. Originally, the SEC was set to decide on approval by August 4, but extended the review period by 45 days due to the need for internal review and public opinion gathering. In its decision document, the SEC stated that "sufficient review time is needed for the proposed regulatory changes and various issues raised".
This ETF is drawing hot reactions in political circles as it is the first virtual asset index fund indirectly associated with President Donald Trump. Currently, as Trump continues to make supportive statements about Bit Token (BTC) during his election campaign, some Democratic figures and crypto experts are raising concerns about potential conflicts of interest.
Notably, Senator Jeff Merkley strongly objected, saying "Trump could change crypto regulations to his advantage and potentially gain personal benefits in the process", arguing that ETF approval would open the door to power abuse. In fact, the crypto asset holdings of Trump-related companies are known to have increased nearly twofold compared to last year.
Meanwhile, the SEC has also extended the review deadline for Grayscale's Solana (SOL) trust conversion to an ETF until October 10. Previously, the SEC approved spot Bit Token ETFs earlier this year, but appears to be taking a more cautious stance on this Truth Social Bit Token ETF.
As the intersection of politics and cryptocurrency expands, the industry's attention is focused on what conclusion the SEC will reach. This decision is expected to be a critical watershed that goes beyond simple ETF approval and can gauge the direction of cryptocurrency industry regulation in the United States.
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