The U.S. Securities and Exchange Commission (SEC) announced it is seeking public comments on a proposal for the Canary Litecoin Exchange-Traded Fund (ETF). This move is a step forward in the potential approval or disapproval process by the agency.
The SEC has requested comments to be submitted within 21 days following the proposal's publication in the Federal Register. The details of this request were outlined in a filing that the SEC posted earlier this week.
Nasdaq had previously filed a 19b-4 form on behalf of Canary for its spot Litecoin ETF on January 16. This filing is a necessary step in the process of proposing a spot cryptocurrency ETF, serving as the second part of a two-step procedure. Once the SEC acknowledges the filing, it will be published in the Federal Register, which will then commence the agency's approval procedure.
The SEC's openness to cryptocurrency ETFs has been demonstrated by past approvals. The agency greenlit Bitcoin ETFs in January 2024, followed by Ethereum ETFs later that same year. These approvals have paved the way for other cryptocurrency-based ETFs to seek regulatory acceptance.
The push for various crypto ETFs has been strong, with multiple firms seeking to launch products based on different cryptocurrencies, including Solana and XRP. Some proposals have even included leveraged crypto ETFs tied to memecoins endorsed by U.S. President Donald Trump and First Lady Melania Trump, anticipating a crypto-friendly administration.
Currently, the SEC is under the interim leadership of Acting Chair Mark Uyeda. Uyeda recently appointed Commissioner Hester Peirce, a fellow Republican, to head a cryptocurrency task force. This leadership shift marks a departure from the approach of former Chair Gary Gensler, who was known for his more critical view of the crypto industry.
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