Due to a government shutdown, the US SEC was unable to rule on the Canary Spot LTC ETF

BlockBeats News, October 3, the U.S. Securities and Exchange Commission (SEC) on Thursday (the original deadline for its decision) took no action, leaving Canary Capital's spot Litecoin exchange-traded fund in limbo. The SEC's silence has left the crypto community uncertain about how the regulatory agency will operate during the federal government shutdown and how its new universal listing standards will affect the timeline for dozens of pending crypto ETF applications awaiting approval.

Bloomberg ETF analyst James Seyffart and FOX News reporter Eleanor Terrett pointed out that the old 19b-4 deadline for crypto ETF applications may no longer apply, as the U.S. Securities and Exchange Commission (SEC) has requested 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 U.S. Securities and Exchange Commission (SEC) released an "action plan" in response to a government shutdown event, stating that it would "no longer review and approve registration applications." This includes new financial products, modifications to self-regulatory organization rules, and the effectiveness of reviewing or expediting 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 is also a result of the new universal listing standards, which would render the 19b-4 deadline irrelevant.

At the SEC's request, Canary withdrew its 19b-4 application on September 25, which may have been a factor in the SEC's decision to take no action on Thursday. It is currently unclear what impact the 19b-4 application will have on applicants who have not yet withdrawn that filing.