SEC Delays Canary Litecoin ETF Decision Amid U.S. Government Shutdown Impacting Crypto ETF Approvals

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Canary Capital's spot Litecoin ETF due to procedural shifts and a government shutdown, leaving the application in regulatory limbo. The SEC is transitioning from the traditional 19b-4 filing process to S-1 registration statements for crypto ETFs, which has caused confusion and altered approval timelines. The government shutdown has further restricted SEC operations, pausing reviews of new financial products and delaying decisions on multiple altcoin ETF applications, including those for Litecoin, Solana, and XRP. Despite the delays, Solana-based ETF proposals are gaining momentum with institutional interest, including staking options, and have seen positive inflows in U.S. and European markets. Analysts note that the old 19b-4 deadlines may no longer apply under the new SEC framework, contributing to uncertainty over when approvals might occur. This combination of regulatory transition and political deadlock underscores growing uncertainty in the U.S. crypto ETF market's expansion beyond Bitcoin and Ethereum.