The U.S. Securities and Exchange Commission (SEC) missed its October 2 deadline to decide on Canary Capital’s proposed spot Litecoin (LTC) exchange-traded fund (ETF), leaving investors and the crypto market uncertain. The agency has not issued any public comment explaining the delay.
Earlier this year, the SEC asked firms to withdraw their 19b-4 filings, which had been used for exchange rule changes, in favor of S-1 registration statements for ETF approval. Canary withdrew its 19b-4 application on September 25, following the SEC’s instructions.
FOX News reporter Eleanor Terrett noted, “Since the generic listing standard went into effect and the agency asked issuers and partner exchanges to withdraw their 19b-4s, I’m told the deadlines technically no longer matter.”
Analysts say this regulatory shift makes the old 19b-4 deadlines less relevant, but it adds uncertainty to the approval process for crypto ETFs, which are already under increased scrutiny.
Government shutdown complicates approval
The SEC outlined in August that during a federal government shutdown, it would “not review and approve applications for registration.”
This includes new financial products, self-regulatory organization rule changes, and accelerated registration statements. While the SEC continues to operate with limited staff, this has slowed the review of new ETF applications, including Canary’s Litecoin proposal.
Litecoin market update
Litecoin is currently trading at $116.51, down 2.41% in the last 24 hours. It is ranked #19 by market capitalization, which stands at $8.89 billion, up 2.25% for the day. Its 24‑hour trading volume is $1.15 billion, down 13.47%, as per CoinMarketCap data.
Broader crypto ETF landscape
Canary’s ETF is just one of several altcoin funds being reviewed in the U.S., with proposals for Solana, XRP, Avalanche, Cardano, Chainlink, and Dogecoin also in the works. Meanwhile, Bitcoin and Ethereum spot ETFs have already drawn over $74 billion, showing that institutional investors remain heavily interested in crypto.
Top asset managers like Fidelity, Franklin Templeton, and Bitwise have submitted updated S‑1 filings for spot Solana ETFs, some featuring staking options. Analysts expect the SEC could give approval to some of these ETFs by mid‑October.
The SEC’s delay highlights the challenges of crypto regulation in the U.S., where procedural changes and limited staffing during a government shutdown leave issuers and investors waiting for clarity.