Canary Capital's spot Litecoin ETF is currently at a standstill, as the U.S. Securities and Exchange Commission (SEC) took no action on Thursday (the originally scheduled decision deadline).
The SEC's silence has heightened uncertainty within the crypto community regarding how the regulatory body operates during a federal government shutdown and the impact of new listing standards on the approval process for numerous pending crypto ETF applications.
According to Bloomberg ETF analyst James Seyffart and FOX News reporter Eleanor Terrett, the SEC has requested applicants to withdraw old 19b-4 crypto ETF applications, making the S-1 registration statement the only document requiring regulatory approval, as the old deadlines may no longer apply.
Another layer of uncertainty remains due to the government shutdown.
As indicated in the SEC's "operating plan" released in August, in response to the government shutdown, the SEC will "not review and approve registration applications." This includes new financial products, changes to self-regulatory organization rules, and the review or acceleration of registration statements.
It is currently unclear whether the SEC's silence on the Canary spot Litecoin ETF is solely due to the government shutdown or if it is also related to the new listing standards. If it is the latter, the 19b-4 deadline may have lost its significance.
At the SEC's request, Canary withdrew its 19b-4 application on September 25, which may be one reason the SEC did not make a decision on Thursday. It remains uncertain what impact the 19b-4 documents will have on other applicants who have not withdrawn their applications.
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Cointelegraph has reached out to the SEC and Canary for comment, but has not received a response as of publication.
In light of the government shutdown on Wednesday, the SEC stated it would continue operations, but the number of available staff is "very limited."
The SEC indicated that its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) database will continue to operate.
Additionally, the market is highly focused on the potential approval of several new spot crypto ETFs, including Litecoin, Solana (SOL), XRP, Avalanche (AVAX), Cardano (ADA), Chainlink (LINK), and Dogecoin (DOGE).
Any approvals would expand the existing Bitcoin and Ethereum ETFs in the U.S., which have attracted net inflows of $61.3 billion and $13.4 billion, respectively, since their launch last year.
Bloomberg ETF analyst Eric Balchunas stated on Monday that despite facing obstacles, the SEC's new listing standards have increased the probability of approval for some spot crypto ETFs to 100%.
The new listing standards are expected to streamline the process under the Rule 6c-11 framework, significantly shortening the typical approval timeline of up to 240 days.
SEC Chairman Paul Atkins stated that the new listing standards will lower the barriers to obtaining digital asset products, providing investors with more choices.
Related: The "Witch" on Etsy claims to turn you into a cryptocurrency millionaire for just $73.
Original article: “SEC Remains Silent on Canary Litecoin (LTC) ETF Amid U.S. Government Shutdown”
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