Canary Capital’s spot Litecoin exchange-traded fund is in limbo after the US Securities and Alternate Fee took no motion on Thursday, the unique deadline for it to decide.
The SEC’s silence has left the crypto group unsure about how the regulator will operate amid a federal government shutdown and the way its new generic listing standards would have an effect on the timelines of dozens of crypto ETF functions awaiting approval.
Bloomberg ETF analyst James Seyffart and FOX Information reporter Eleanor Terrett famous that the outdated 19b-4 deadlines for crypto ETF functions might not be related, because the SEC has requested candidates to withdraw them, leaving the S-1 registration assertion as the only real doc requiring regulatory approval.
Nevertheless, overshadowing that’s one other layer of uncertainty surrounding the federal government shutdown.
In August, the SEC posted an “Operation Plan” within the occasion of a authorities shutdown, stating it could “not evaluate and approve functions for registration.” This contains new monetary merchandise, self-regulatory group rule adjustments, and reviewing or accelerating the effectiveness of registration statements.
It’s unclear whether or not the SEC’s silence on Canary’s spot Litecoin ETF is solely because of the authorities shutdown or whether or not it is usually a results of the brand new generic itemizing requirements, which might render the 19b-4 deadline irrelevant.
Canary withdrew its 19b-4 final week, complicating the matter
Canary withdrew its 19b-4 utility on Sept. 25 on the SEC’s request, which can have been a contributing issue to the SEC not deciding on Thursday. It’s unclear what influence the 19b-4s may have on candidates who haven’t withdrawn that doc.
— Litecoin (@litecoin) October 2, 2025
Cointelegraph reached out to the SEC and Canary for remark, however didn’t obtain an instantaneous response.
SEC nonetheless open, however in restricted capability
In mild of the federal government shutdown on Wednesday, the SEC stated that it could proceed to function, however with a “very restricted” variety of employees members obtainable.
The SEC mentioned its Digital Information Gathering, Evaluation and Retrieval (EDGAR) database would stay operational.
Altcoins look so as to add to $75 billion spot crypto ETF market in US
The market has been bracing for potential approval of a number of new spot crypto ETFs — together with LTC and Solana (SOL) to XRP (XRP), Avalanche (AVAX), Cardano (ADA), Chainlink (LINK) and Dogecoin (DOGE).
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Any approval would add to the US spot Bitcoin (BTC) and Ether (ETH) ETFs currently available, which have attracted $61.3 billion and $13.4 billion in inflows since their launch final 12 months.
Regardless of the setbacks, Bloomberg ETF analyst Eric Balchunas said on Monday that the SEC’s new itemizing requirements have bumped the odds of some spot crypto ETF approvals to 100%.
The itemizing requirements are anticipated to streamline the method underneath Rule 6c-11, considerably lowering approval timelines, which generally take as much as 240 days.
SEC Chair Paul Atkins mentioned the brand new itemizing requirements will scale back obstacles to accessing digital asset merchandise and supply traders extra selection.
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