SEC Delays Canary Litecoin ETF Decision, Litecoin Drops 3%

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the proposed rule change to list and trade the Canary Litecoin ETF. The commission, led by Paul Atkins, is now seeking public comments on whether the proposal complies with regulatory requirements, particularly in preventing fraudulent and manipulative practices. The public has been given 21 days to submit their comments, with an additional 35 days for rebuttal comments from May 5.

The SEC's delay in decision-making could be a strategic move to allow lawmakers more time to issue clear crypto regulations. The U.S. Senate is preparing to vote on the GENIUS Act this week, while the House of Representatives is pushing for a clear crypto regulatory outlook. The House aims to clarify crypto securities and commodities, which would assist the SEC in making more informed decisions.

Following the announcement, the price of Litecoin (LTC) dropped over 3 percent in the past 24 hours, trading at approximately $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, is facing further short-term bearish sentiment.