SEC postponed decision on Litecoin ETF and awaits public opinions

Postponement of SEC decision on Litecoin ETF

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Canary Capital proposal to create an exchange-traded fund (ETF) based on Litecoin (LTC). This decision follows previous delays on other crypto ETF applications, including XRP, Hedera, and Dogecoin.

The SEC announced the postponement within the established timeframe and requested public comments regarding compliance with regulatory norms of the proposal.

The commission is interested in feedback on the design of the proposal to prevent fraudulent practices.

Canary Capital, founded by Steven McClarg in 2023, submitted initial documents for the ETF in October.

LTC has a market capitalization of $6.6 billion and is the native cryptocurrency of the Litecoin blockchain.

Bloomberg Intelligence previously suggested that LTC could become one of the next cryptocurrencies to receive ETF approval.

Since the appointment of SEC Chairman Paul Atkins in April, no significant decisions have been made regarding crypto ETFs, following his predecessor Gary Gensler.