SEC deferred its decision on Litecoin ETF proposal

Recently, the US Securities and Exchange Commission (SEC) has deferred its decision on the spot Litecoin ETF proposed by Canary Funds. The SEC is now seeking public opinion on this proposal whether this ETF will be able to prevent fraud and manipulation. If you want to know about Litecoin in detail, then click on the given link

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This decision is part of a trend in which the SEC has recently deferred decisions on proposals for other Crypto ETFs such as XRP, Hedera and Dogecoin. Although there has been a delay, the market still has expectations.

SEC's objective: Preventing fraud and market manipulation
The SEC has said in its filing that it wants to know whether the Litecoin ETF has any new or different type of risk that has never been seen before. Under this process, the general public has been asked whether this product is suitable for the protection of investors.

This move shows that the SEC now wants to be more transparent and is giving importance to the opinion of the common people in making rules regarding digital assets.

Change in thinking of Trump government and SEC

After Donald Trump became the President of America in early 2025, the attitude of the SEC towards crypto has softened somewhat. The SEC has withdrawn many old cases and started discussing the legal framework for digital assets.

The new chairman of the SEC, Paul Atkins, has also said that he understands the "Enormous Advantages" present in crypto and wants it to be regulated properly.

Litecoin ETF Prospects: Can it become USA's first Litecoin ETF?

According to Bloomberg's ETF analyst James Seyffart, Litecoin is more likely to get ETF approval sooner than other crypto ETFs. He said on the social media platform X, "If any asset is expected to get approval soon, it is Litecoin."

Litecoin is considered a strong candidate due to its stability and long-standing presence in the market.

Competition in the market: Who all are in the race?

The race to launch Litecoin ETF includes many big companies like Canary Funds, Grayscale and CoinShares. All these firms want to capitalize on this opportunity to be the first to bring this ETF to the market. Although the SEC's decision is being delayed, looking at the public interest, it seems that the situation may be cleared soon.

Conclusion
The SEC's decision to postpone the decision on the Litecoin ETF may be disappointing for some investors, but it shows that the agency is seriously reviewing this product. If this ETF is approved, it will be a big step for the cryptocurrency market and may also pave the way for other Altcoin ETFs.