SEC Delays Trump-Backed Bitcoin ETF and Solana Trust
The US Securities and Exchange Commission has delayed its decision on the Trump-backed Truth Social Bitcoin ETF to September 18, pushed Grayscale’s Solana Trust approval to October 10 and extended a proposed Litecoin ETF review into later October. The extensions give the SEC more time for detailed compliance checks, market impact assessments and to address ongoing litigation. Commissioner Hester Peirce warned that ETF approvals may slow amid regulatory uncertainty.
If approved, the Truth Social Bitcoin ETF would become the first crypto exchange-traded fund linked to a sitting US president, raising ethical concerns from Senators Elizabeth Warren and Jeff Merkley. Meanwhile, former President Trump signed the GENIUS Act to regulate stablecoins and directed Fannie Mae and Freddie Mac to accept unconverted crypto as mortgage collateral. Traders should monitor how these ETF delays affect market sentiment, potential inflows and trading volumes as the SEC balances innovation with investor protection.
Bearish
Short-term, the ETF delays are likely to weigh on market sentiment and reduce potential inflows into Bitcoin, leading to decreased trading volumes. The protracted SEC review signals regulatory caution, which may keep prices range-bound. Long-term, a more thorough approval process could bolster investor confidence and pave the way for sustained ETF inflows once decisions are finalized. Historically, SEC postponements have led to temporary price dips, but subsequent approvals often trigger bullish rallies.