- SEC missed the deadline for the Canary Litecoin ETF as shutdown limits staff and delays decisions.
- New SEC rules shift focus to S-1 filings leaving old 19b-4 deadlines unclear for crypto ETF applicants.
- Multiple altcoin ETFs wait for approval as market interest grows in Solana Cardano and other tokens.
The U.S. Securities and Exchange Commission (SEC) missed its Thursday deadline to decide on Canary Capital’s spot Litecoin ETF. The absence of a decision has placed the ETF in regulatory limbo. The missed action adds confusion as the SEC adjusts its crypto ETF review process. The silence also comes as the agency operates with reduced staff due to a federal government shutdown.
Canary had withdrawn its 19b-4 filing on September 25, following SEC guidance. This move left only the S-1 registration for review. Analysts believe 19b-4 deadlines may no longer apply to crypto ETF applications. However, the SEC has not issued a formal update on this change.
Shutdown Slows ETF Progress
The SEC issued a contingency plan in August for shutdown operations. In that plan, it confirmed it would not review new financial products. This includes ETF applications and S-1 registration statements. Though the SEC said it would continue limited operations, application reviews have slowed.
Only essential staff remain active, according to the agency. The EDGAR system is still operational, but delays are expected. It remains unclear if the Canary decision delay is tied to the shutdown or the evolving ETF framework.
New Listing Rules Reshape ETF Filings
The SEC has introduced new listing standards that could affect all pending crypto ETF applications. These standards streamline approvals under Rule 6c-11. The new rules may reduce the typical 240-day timeline significantly.
Applicants were urged to withdraw 19b-4 filings and instead focus on S-1 statements. Canary complied, leaving only the S-1 document under review. Other firms have followed a similar approach, adjusting their filings accordingly.
The new framework creates uncertainty for those who have not withdrawn their 19b-4 documents. No clarification has been provided for those filings still pending.
Altcoin ETFs Await Clarity
Canary’s stalled ETF joins a growing list of altcoin-based proposals. These include products tied to Solana, XRP, Cardano, Dogecoin, Chainlink, and Avalanche. Many seek approval to join the growing U.S. market for spot crypto ETFs. Recently, Canary Capital filed for the Trump Coin ETF with the SEC.
Bitcoin and Ethereum ETFs are already live. Together, they have attracted over $74 billion in inflows since launch. New filings, such as those from Fidelity and Franklin Templeton, now include staking features. These changes could influence future Ethereum ETF approvals.
Solana has emerged as a favorite among institutions. Strong demand has been seen in the U.S. and European markets. The pending applications reflect growing interest in diversifying crypto exposure through ETFs. Last month, the SEC delayed its decision on the Grayscale and Canary XRP trust, with the new deadline set for October.
