SEC delays decisions on Truth Social’s Bitcoin and Ethereum ETF, along with XRP and Litecoin funds

The U.S. Securities and Exchange Commission punted on deciding on whether to approve an exchange-traded fund issued by Truth Social, a social media platform operated by Trump Media & Technology Group.

The SEC marked Oct. 8 as its next deadline for the Truth Social Bitcoin and Ethereum ETF, according to a filing made on Monday. The delay is routine as the agency weighs dozens of crypto ETF proposals.

Two more delays were also filed on Monday for the CoinShares Litecoin ETF, CoinShares XRP ETF, and the 21Shares Core XRP ETF to later in October.

"The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein," the agency said in the filing for Truth Social's ETF.

Truth Social's Bitcoin and Ethereum ETF was first proposed in June and has received one comment so far, urging the agency to deny its approval over concerns of President Donald Trump's involvement in crypto. Trump has made millions from his family's crypto ventures, including the World Liberty Financial DeFi and stablecoin project and the TRUMP and MELANIA memecoin launches.

"If the SEC votes to approve the launch, it will put doubts into the minds of Americans and potentially undermine confidence in the markets and the agency itself," said Caroline Ciccone, president of Accountable.US, a nonprofit geared at holding government officials accountable. "And the commission will have to face these questions: Did they approve the rule because it is the right thing for the country? Or did it do so because it will benefit the president’s business?"

Truth Social is also vying for a bitcoin ETF.

The SEC’s posture toward crypto ETFs has changed notably over the past year since Trump took office. In July, the agency under new leadership voted to approve orders to allow in-kind creations and redemptions by authorized participants for crypto ETFs. The agency also then allowed applications looking to list and trade spot bitcoin and Ethereum ETFs and as well as options on "certain spot bitcoin ETPs."

During the Biden administration, the SEC greenlighted spot bitcoin ETFs and later Ethereum ETFs, following a pivotal court ruling.

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