The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the proposed listing of the Canary Litecoin ETF, opting instead to open the floor for public feedback.
The agency is now reviewing whether the application aligns with regulatory standards, particularly in regard to safeguarding against fraud and manipulation in the crypto markets.
In a notice published on May 5 by assistant secretary Sherry Haywood, the SEC invited the public to weigh in on the ETF proposal within the next 21 days, with a 35-day window for rebuttals.
The core question is whether this Litecoin-backed fund presents any unique risks or concerns beyond what the SEC has already addressed in past reviews of similar products.
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This delay arrives amid broader uncertainty about digital asset regulation in the U.S. While the SEC, now led by Chair Paul Atkins, awaits a clearer legislative framework, lawmakers are actively working toward it.
The Senate is expected to vote soon on the GENIUS Act, a bill aimed at establishing more precise crypto oversight. Meanwhile, the House is advocating for definitive rules to help differentiate between digital securities and commodities, which would, in turn, shape how ETFs like this one are evaluated.
Alexander Stefanov
