SEC Hits Pause on Canary’s Spot SUI ETF—Another Crypto Waiting Game Begins

Regulators kick the can down the road—again. The SEC delayed its decision on Canary’s spot SUI ETF filing, leaving crypto investors to wonder if this is strategic caution or just bureaucratic inertia.

Why it matters: Spot ETFs bridge crypto and traditional finance, but the SEC’s foot-dragging suggests Wall Street still hasn’t found a way to profitably middleman this one. Meanwhile, traders shrug and keep stacking SUI on offshore exchanges.

The bottom line: Until the SEC stops treating crypto like a regulatory whack-a-mole, innovation will keep bypassing their playbook—with or without their blessing.

This is happening as more institutions are interested in crypto, with JPMorgan being one of the first to provide loans backed by Bitcoin ETFs.

The SEC has been cautious about approving Spot ETFs for cryptocurrencies. While it has approved several crypto ETFs based on futures trading, Spot ETFs face more scrutiny due to concerns about market manipulation and investor protection. 

Both the SEC and Binance are concerned about bot abuse and price manipulation, so Binance recently changed its Alpha Points Program. The agency’s review process can take months and includes public feedback and legal checks. Canary will have to wait until the next review period to hear the SEC’s final decision.

The delay did not affect SUI’s price which stayed stable as expected by the market. Analysts have noted that the SEC’s careful approach proves it is difficult to fit crypto products into the current financial rules.

No date has been set for the SEC’s next update. The crypto community will be watching closely, as Spot ETFs promise quicker and more direct crypto access for investors.

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