The race for crypto ETF approvals seems to be intensifying in the final days of the Gensler-led Securities and Exchange Commission, with Nasdaq's filing for Canary Capital's spot Litecoin ETF a key test ahead of an expected transformation of U.S. cryptocurrency regulation.
The push for a Litecoin ETF arrives at a transitional moment for crypto regulation, as the incoming Trump administration prepares to install new leadership at the SEC and implement a markedly different approach to digital assets.
Current SEC Chair Gary Gensler will be replaced by Paul Atkins, a known advocate for lighter market regulation. This pending leadership change could fundamentally alter the approval process for crypto investment products.
"We had heard chatter that the Litecoin S-1 had gotten comments back from SEC," Bloomberg senior ETF analyst Eric Balchunas wrote on X. "This looks to confirm that which bodes well for our prediction that Litecoin is most likely to be the next coin approved."
Crypto Markets Eye Regulatory Shift
The president-elect's stance on cryptocurrencies has evolved significantly since his first term. At the 2024 Nashville Bitcoin Conference, Trump outlined plans to position the U.S. as a global crypto leader, warning, "If we don't do it, China will."
The proposed Litecoin ETF would join a growing suite of crypto investment products, following bitcoin and Ethereum ETF approval last year. Unlike those early approvals, which faced years of regulatory hurdles, Litecoin's path could benefit from the incoming administration's crypto-friendly approach, including the planned appointment of David Sacks as AI and Crypto Czar.
Markets have responded to these shifts, with Litecoin rallying more than 20% in the past 24 hours, according to CoinMarketCap data , as traders weigh the implications of both the filing and the imminent leadership transition.
Created in 2011, Litecoin represents an early example of cryptocurrency evolution, offering faster transaction speeds and lower fees than bitcoin. These attributes could align with the incoming administration's stated vision for practical digital asset adoption.
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