Possibly affected by the government shutdown, the US SEC has not made a decision on the Canary spot LTC ETF.
ChainCatcher reported that the U.S. Securities and Exchange Commission took no action, causing Canary Capital's spot Litecoin exchange-traded fund to be in limbo.
The silence from the U.S. Securities and Exchange Commission has left the crypto community uncertain about how the regulator will operate during the federal government shutdown, as well as how its new universal listing standards will affect the timeline for dozens of pending crypto ETF applications. Bloomberg ETF analyst James Seyffart and FOX News reporter Eleanor Terrett pointed out that the old 19b-4 deadlines for crypto ETF applications may no longer apply, as the SEC has asked applicants to withdraw these deadlines, leaving only the S-1 registration statement as the sole document requiring regulatory approval. In August of this year, the SEC issued a contingency plan for government shutdowns, stating that it would no longer review and approve registration applications. This includes new financial products, amendments to self-regulatory organization rules, and the review or acceleration of the effectiveness of registration statements. It is currently unclear whether the SEC's silence on Canary's spot Litecoin ETF is entirely due to the government shutdown, or also a result of the new universal listing standards, which would render the 19b-4 deadlines irrelevant. At the SEC's request, Canary withdrew its 19b-4 application on September 25, which may be one factor leading to the SEC's lack of decision. It is still unclear what impact the 19b-4 application will have on applicants who have not yet withdrawn the document.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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