SEC Misses Litecoin ETF Decision Deadline Amid Shift
SEC delays Litecoin ETF decision during shutdown; new listing rules may make old deadlines irrelevant.
- SEC missed deadline on Canary Capital’s Litecoin ETF decision.
- Government shutdown likely caused the delay.
- New SEC rules may override old ETF approval timelines.
SEC Delays Litecoin ETF Amid Shutdown
The U.S. Securities and Exchange Commission (SEC) has failed to meet the Thursday deadline to decide on Canary Capital’s proposed spot Litecoin ETF. The delay appears to be linked to the recent U.S. government shutdown, which has disrupted normal agency operations.
This deadline was related to the 19b-4 filing process, a requirement for new ETFs to be listed on exchanges. Normally, the SEC must act on these within a set timeframe, but missed deadlines during shutdowns aren’t unusual.
Canary Capital’s application seeks to launch a spot-based exchange-traded fund (ETF) that directly holds Litecoin, a popular cryptocurrency often described as “digital silver” next to Bitcoin.
Old Timelines May No Longer Apply
According to Bloomberg ETF analysts, these missed deadlines may soon become less relevant. The SEC is reportedly moving toward adopting generic listing standards, which could simplify the ETF approval process and remove the need for individual 19b-4 approvals.
If implemented, these new standards would allow certain ETFs to be listed without extensive back-and-forth with the SEC. This would not only speed up the process but also signal a more crypto-friendly regulatory approach.
Still, for Canary Capital and Litecoin supporters, the delay is frustrating. Many are hoping Litecoin will follow in the footsteps of Bitcoin and Ethereum, both of which have seen major progress in ETF approvals.
What’s Next for Litecoin ETF Hopefuls?
It’s unclear when the SEC will revisit the Litecoin ETF decision. If the agency formally adopts the new standards, it could remove current roadblocks not just for Litecoin, but for other crypto-based ETFs waiting in line.
Investors and the crypto community are watching closely. A green light for Litecoin could boost confidence in altcoin-based financial products, setting a precedent for more diversified crypto investment options in traditional markets.
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