SEC Delays Decisions on Trump-Backed Bitcoin ETF and Grayscale’s Solana Trust Amid Ongoing Crypto Regulation Efforts
July 28, 2025
The U.S. Securities and Exchange Commission (SEC) has announced delays in its review of several high-profile cryptocurrency exchange-traded fund (ETF) proposals, including the much-anticipated Truth Social Bitcoin ETF backed by former President Donald Trump’s media group. The decision deadline for this fund has been extended to September 18 from the original date of August 4. Similarly, the agency postponed its ruling on Grayscale’s Solana Trust to October 10, alongside delays regarding a proposed Litecoin ETF from Canary Capital.
Extended Review Periods Reflect Caution Amid Increasing Scrutiny
The Truth Social Bitcoin ETF, which aims to be listed on the NYSE Arca exchange under the SEC’s commodity-based trust share framework, represents a significant development: it would be the first cryptocurrency ETF connected to a business interest of a sitting or former U.S. president. Despite the attention, the SEC has yet to raise formal objections to the proposal. However, the commission has cited the need for more time to thoroughly evaluate the filings and any concerns that have been raised.
The SEC traditionally has up to 270 days to approve or reject ETF applications, reflecting the complexity and risk assessments involved in regulating these products. Hester Peirce, a commissioner known for her pro-crypto stance and nicknamed “Crypto Mom,” recently cautioned stakeholders to expect slower approval processes due to ongoing litigation and broader regulatory considerations.
Broader Crypto Regulatory Context and Political Concerns
The Trump-backed Bitcoin ETF is not the only project experiencing delays. Grayscale’s Solana Trust, an important crypto asset fund, faces an extended review period, as does Canary Capital’s proposed Litecoin ETF. These delays come amid heightened regulatory attention by U.S. lawmakers and the SEC as Congress advances legislation aimed at clearer crypto regulation.
Trump’s involvement in the crypto sector remains under scrutiny. While the ETF proposal itself has not been formally challenged, other deals tied to Trump’s business interests have attracted criticism from prominent Democrats. In May, Senators Elizabeth Warren and Jeff Merkley issued a letter to the Office of Government Ethics pointing out a Trump-linked cryptocurrency arrangement involving World Liberty Financial, Binance, and a UAE firm. They described the deal as a “staggering conflict of interest” that could enable profits from foreign corruption through stablecoins linked to Trump’s family.
There are also broader ethical and regulatory impartiality concerns, with critics worried that Trump could personally benefit if regulatory decisions such as ETF approvals increase demand for crypto assets associated with his brand.
Trump’s Continued Engagement with Crypto Policy
Since leaving office, Donald Trump has remained active in crypto policy circles. In July, he signed the GENIUS Act, landmark legislation providing a regulatory framework for stablecoins—an important form of cryptocurrency pegged to traditional assets. Additionally, in June, a Trump-appointed official at the Federal Housing Finance Administration directed Fannie Mae and Freddie Mac to explore incorporating cryptocurrency holdings in mortgage underwriting metrics, signaling a broader consideration of digital assets within U.S. financial systems.
Industry Perspective and Historical Context
Approval of crypto ETFs in the United States has historically been a slow and cautious process. The first spot Bitcoin ETF application was filed back in 2013, but the SEC only granted approval in January 2024. The recent delays, while frustrating to stakeholders, are in line with a rigorous regulatory approach aimed at protecting investors and ensuring market integrity.
Looking Ahead
With the SEC extending its review deadlines for prominent crypto funds, industry participants and investors await further clarity on the future of cryptocurrency ETFs in the U.S. market. The regulatory environment continues to evolve as lawmakers and agencies balance innovation with investor protection and political considerations.
For ongoing updates on cryptocurrency regulation and ETF approvals, stay tuned.