Donald Trump's social media company, Truth Social, has received U.S. regulatory approval to go public by merging with a blank check company called Digital World Acquisition Corp.

The big picture: This is a giant step forward for the beleaguered deal, but comes one day after a giant step backward.

Details: DWAC disclosed that the U.S. Securities & Exchange Commission signed off on its registration statement and that it soon will announce a shareholder vote date.

• Shares rose nearly 15% on the news, giving DWAC a market cap of around $1.86 billion.

Caveat: DWAC disclosed earlier in the week that former CEO and current director Patrick Orlando has "expressed a desire for additional compensation ... which we believe presents a risk to our ability to consummate the [Truth Social merger] on a timely basis (or at all)."

• Orlando owns 14.8% of DWAC's outstanding shares and holds a controlling interest in its founder shares. Were he to oppose the merger, or even just object to amendments, he could possibly scuttle the deal.