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    SEC silent on Canary Litecoin ETF Amid Uncertainties
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    SEC silent on Canary Litecoin ETF Amid Uncertainties

    DigicoinvisionBy No Comments3 Mins Read

    Canary Capital’s spot Litecoin exchange-traded fund is in limbo after the US Securities and Exchange Commission took no action on Thursday, the original deadline for it to make a decision.

    The SEC’s silence has left the crypto community uncertain about how the regulator will function amid a federal government shutdown and how its new generic listing standards would affect the timelines of dozens of crypto ETF applications awaiting approval.

    Bloomberg ETF analyst James Seyffart and FOX News reporter Eleanor Terrett noted that the old 19b-4 deadlines for crypto ETF applications may no longer be relevant, as the SEC has asked applicants to withdraw them, leaving the S-1 registration statement as the sole document requiring regulatory approval.

    Source: Eleanor Terrett

    However, overshadowing that is another layer of uncertainty surrounding the government shutdown.

    In August, the SEC posted an “Operation Plan” in the event of a government shutdown, stating it would “not review and approve applications for registration.” This includes new financial products, self-regulatory organization rule changes, and reviewing or accelerating the effectiveness of registration statements.

    It is unclear whether the SEC’s silence on Canary’s spot Litecoin ETF is solely due to the government shutdown or whether it is also a result of the new generic listing standards, which would render the 19b-4 deadline irrelevant.

    Canary withdrew its 19b-4 last week, complicating the matter

    Canary withdrew its 19b-4 application on Sept. 25 at the SEC’s request, which may have been a contributing factor to the SEC not deciding on Thursday. It is unclear what impact the 19b-4s will have on applicants who haven’t withdrawn that document.

    Cointelegraph reached out to the SEC and Canary for comment, but didn’t receive an immediate response.

    SEC still open, but in limited capacity

    In light of the government shutdown on Wednesday, the SEC stated that it would continue to operate, but with a “very limited” number of staff members available. 

    The SEC said its Electronic Data Gathering, Analysis and Retrieval (EDGAR) database would remain operational.