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    SEC Holds Back on Canary Litecoin ETF as Uncertainties Loom

    wsjcryptoBy Nessun commento3 Mins Read

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    Canary Capital’s spot Litecoin exchange-traded fund stands unresolved after the US Securities and Exchange Commission refrained from action on Thursday, the initial deadline for making a determination.

    The SEC’s inaction has left the crypto community in doubt about how the regulator will operate amidst a federal government shutdown and how its newly established generic listing criteria would influence the timelines of numerous crypto ETF applications waiting for clearance.

    Bloomberg ETF analyst James Seyffart and FOX News journalist Eleanor Terrett remarked that the prior 19b-4 deadlines for crypto ETF submissions may no longer hold relevance, as the SEC has requested applicants to retract them, leaving the S-1 registration statement as the only document necessitating regulatory approval.

    Source: Eleanor Terrett

    Nevertheless, overshadowing this is an additional layer of ambiguity concerning the government shutdown.

    In August, the SEC released an “Operational Plan” in case of a government shutdown, indicating it would “not review and authorize registration applications.” This encompasses new financial instruments, self-regulatory organization rule modifications, and the evaluation or acceleration of the effectiveness of registration statements.

    It remains uncertain if the SEC’s quietness regarding Canary’s spot Litecoin ETF is solely attributable to the government shutdown or if it also stems from the new generic listing criteria, rendering the 19b-4 deadline non-essential.

    Canary retracted its 19b-4 last week, complicating the situation

    Canary retracted its 19b-4 submission on Sept. 25 at the SEC’s behest, which may have influenced the SEC’s indecision on Thursday. The effects of the 19b-4s on applicants who have not withdrawn that document remain unclear.

    Cointelegraph contacted the SEC and Canary for remarks, but did not receive an immediate reply.

    SEC still operational, yet in a restricted capacity

    In light of the government shutdown on Wednesday, the SEC declared that it would maintain operations, albeit with a “very limited” staff presence.

    The SEC confirmed that its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) database would stay functional.