Due to the government shutdown, the SEC has failed to make a decision on the Canary spot LTC ETF

ChainCatcher news, the U.S. Securities and Exchange Commission's inaction has left Canary Capital's spot Litecoin exchange-traded fund in limbo.

The SEC's silence has left the crypto community uncertain about how the regulator will operate during the federal government shutdown and how its new universal listing standards will affect the timeline for dozens of crypto ETF applications awaiting approval. Bloomberg ETF analyst James Seyffart and FOX News reporter Eleanor Terrett noted that the old 19b-4 deadlines for crypto ETF applications may no longer apply, as the 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 SEC released an action plan in response to the government shutdown, stating that it would no longer review and approve registration applications. This includes new financial products, modifications to self-regulatory organization rules, and the review or acceleration of the effectiveness of registration statements. It remains unclear whether the SEC's silence on Canary's spot Litecoin ETF is solely due to the government shutdown or also a result of the new universal listing standards, which would render the 19b-4 deadlines irrelevant. At the SEC's request, Canary withdrew its 19b-4 application on September 25, which may be a factor in the SEC's lack of decision. It is currently unclear what impact the 19b-4 application will have on applicants who have not yet withdrawn that document.