SEC Kicks Canary Litecoin ETF Down the Road—LTC Tanks 3% as Bureaucrats Hit Snooze

Another day, another regulatory delay. The SEC just punted on the Canary Litecoin ETF decision—because why approve innovation when you can drown it in paperwork?

LTC price took an immediate 3% nosedive as traders facepalmed at Washington’s trademark combo: indecision masquerading as ’due diligence.’

Meanwhile, Wall Street’s Bitcoin ETFs print money daily. Coincidence? Or just the usual crypto double standards?

• The U.S. SEC is now seeking public comment on whether the proposal to list the ETF complies with regulatory requirements.

• The agency could be stalling to give the lawmakers a chance to issue clear crypto regulations.

The United States Securities and Exchange Commission (SEC) delayed its decision making on the proposed rule change to list and trade Canary Litecoin ETF. According to the announcement by Sherry Haywood, assistant secretary at U.S. SEC, the commision is now seeking public comments on whether the proposal to list the ETF complies with regulatory requirements, particularly in preventing fraudulent and manipulative practices.

The agency has given the public 21 days to submit their comments, while the rebuttal comments can be submitted in the next 35 days from May 5.

“The commission seeks comments on whether the proposal to list and trade shares of the trust, which would hold LTC, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the commission,” the agency noted.

Bigger Picture and Impact on Litecoin Price

Tte U.S. SEC, under the leadership of Paul Atkins, has been waiting for clear regulatory guidance from the lawmakers. As the U.S. Senate prepares to vote the GENIUS Act this week, the House of Representatives continues to push for enactment of a clear crypto regulatory outlook in the NEAR term.

For instance, the House of Representative intends to clarify on crypto securities and commodities, which will help the SEC make better informed decisions.

NEW: Page 49 of the House’s new market structure discussion draft aims to clarify that transactions involving the sale of digital commodities do not constitute securities as long as those transactions do not involve the purchaser acquiring an ownership interest in the issuer’s… pic.twitter.com/QkkGbCdrVx

Following the announcement, LTC price dropped over 3 percent in the past 24 hours to trade at about $83.25 on Monday, May 5, during the mid-North American trading session. The mid-cap altcoin, with a fully diluted valuation of about $6.9 billion, faces further short-term bearish sentiment.