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Canary Capital\u2019s 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.<\/p>\n
The SEC\u2019s inaction has left the crypto community in doubt about how the regulator will operate amidst a federal government shutdown<\/a> and how its newly established generic listing criteria<\/a> would influence the timelines of numerous crypto ETF applications waiting for clearance.<\/p>\n Bloomberg ETF analyst James Seyffart<\/a> and FOX News journalist Eleanor Terrett<\/a> 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.<\/p>\n Nevertheless, overshadowing this is an additional layer of ambiguity concerning the government shutdown.<\/p>\n In August, the SEC released<\/a> an \u201cOperational Plan\u201d in case of a government shutdown, indicating it would \u201cnot review and authorize registration applications.\u201d This encompasses new financial instruments, self-regulatory organization rule modifications, and the evaluation or acceleration of the effectiveness of registration statements.<\/p>\n It remains uncertain if the SEC\u2019s quietness regarding Canary\u2019s spot Litecoin ETF<\/a> 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.<\/p>\n Canary retracted its 19b-4 submission on Sept. 25 at the SEC\u2019s 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 The effects of the 19b-4s on applicants who have not withdrawn that document remain unclear.<\/p>\n pic.twitter.com\/FmbMfWWaqe<\/a><\/p>\n \u2014 Litecoin (@litecoin) October 2, 2025<\/a><\/p><\/blockquote>\n Cointelegraph contacted the SEC and Canary for remarks, but did not receive an immediate reply.<\/p>\n In light of the government shutdown on Wednesday, the SEC declared<\/a> that it would maintain operations, albeit with a \u201cvery limited\u201d staff presence.<\/p>\n The SEC confirmed that its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) database would stay functional.<\/p>\n <\/p>\n The market has been anticipating the possible approval of several new spot crypto ETFs\u2014including LTC and Solana (SOL<\/a>), XRP (XRP<\/a>), Avalanche (AVAX<\/a>), Cardano (ADA<\/a>), Chainlink (LINK<\/a>), and Dogecoin (DOGE<\/a>).<\/p>\n Related: <\/strong><\/em>House Republicans to investigate Gary Gensler\u2019s deleted messages<\/strong><\/em><\/a><\/p>\n Any approval would add to the US spot Bitcoin (BTC<\/a>) and Ether (ETH<\/a>) ETFs currently existing<\/a>, which have garnered $61.3 billion<\/a> and $13.4 billion<\/a> in inflows since their introduction last year.<\/p>\n Despite the challenges, Bloomberg ETF analyst Eric Balchunas mentioned<\/a> on Monday that the SEC\u2019s new listing criteria have increased the chances<\/a> of some spot crypto ETF approvals to 100%.<\/p>\n The listing criteria are anticipated to streamline the procedure under Rule 6c-11, significantly shortening approval timelines, which conventionally take up to 240 days.<\/p>\n SEC Chair Paul Atkins<\/a> asserted that the new listing criteria will diminish obstacles to accessing digital asset offerings and provide investors with greater options.<\/p>\n Magazine: <\/strong><\/em>Can Robinhood or Kraken\u2019s tokenized stocks ever be authentically decentralized?<\/strong><\/em><\/a><\/p>\n <\/div>\nCanary retracted its 19b-4 last week, complicating the situation<\/h2>\n
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SEC still operational, yet in a restricted capacity<\/h2>\n
Altcoins aim to enhance $75 billion spot crypto ETF market in US<\/h2>\n