An approval on Canary Spot SUI ETF's filing has been postponed by the SEC. Since the US regulator hasn't made a decision yet, investors and people tracking the market remain expectant.
The Securities and Exchange Commission has postponed the approval of an SUI spot ETF filed by. As the U.S. regulator has yet to make a decision, investors and those following the market are still awaiting the verdict.
Delay in SEC Approval Shows the Continued Watchful Eye on Crypto
Canary had applied to start an SUI spot ETF, which would track the price movements of the SUI token. SUI is the native token of the Sui blockchain, designed for speed and scalability in processing transactions.
A spot ETF allows investors to gain exposure to SUI without needing to buy the token directly. This aligns with the broader institutional interest in crypto-backed financial products, as seen in JPMorgan’s recent move to offer loans backed by BlackRock’s Bitcoin ETF.
However, the SEC has been more conservative in approving crypto spot ETFs. While the agency has accepted a few crypto ETFs for futures trading, these options are not the only ones that investors are seeking.
The agency stated that its reason for the delay is its ongoing assessment of the risks of market manipulation and insufficient investor protection, a concern also shared by exchanges.
Canary’s filing stood out among others as it suggested an SUI-based ETF, making it the first of its kind. Those in the crypto sector saw this as a development that could encourage broader use of digital assets.
Regulatory Hurdles Persist for Spot Crypto ETFs
The U.S. SEC typically utilizes its full review periods, which can span several months, during which time the agency solicits public feedback and scrutinizes the technical and legal aspects of the filings.
The crypto community had mixed reactions to the announcement. Several expressed concern that the additional delay could further hinder crypto innovation in the U.S.
However, others viewed the actions as being in line with the SEC’s cautious approach towards crypto.
The announcement by the agency did not lead to a significant change in the price of SUI. Many were not expecting the announcement to be a firm yes or no.
Analysts opine that the agency’s actions suggest regulators are focused on integrating crypto into the existing legal framework governing the traditional finance industry. Until there are clear regulatory guidelines, the U.S. SEC is likely to proceed with caution.
The delay highlights the ongoing regulatory challenges faced by crypto-related financial products. Spot ETFs offer a more immediate exposure to underlying crypto assets, rendering them more appealing to institutional investors.
The agency has yet to disclose a new date for its next decision on the matter. This development will be closely monitored by the crypto community and investors.
News data source: kdj.com
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