On 29 July 2025, the US Securities and Exchange Commission (SEC) issued a notice titled Release No. 34-103574; File No. SR-NYSEARCA-2025-05 extending the review period for a proposed rule change by NYSE Arca, Inc. to list and trade shares of the Grayscale Litecoin Trust (LTC) under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares).
The US SEC has extended the review period for a proposed rule change by NYSE Arca, Inc. to list and trade shares of the Grayscale Litecoin Trust (LTC), as detailed in Release No. 34-103574; File No. SR-NYSEARCA-2025-05 dated 29 July 2025. The proposal, initially filed on 24 January 2025, seeks to enable trading of the Grayscale Litecoin Trust under NYSE Arca Rule 8.201-E, which governs Commodity-Based Trust Shares. An amendment to the original filing was submitted on 3 February 2025, replacing the initial proposal in its entirety, and was published for public comment in the Federal Register on 12 February 2025.
The Grayscale Litecoin Trust aims to provide investors with exposure to Litecoin, a prominent cryptocurrency, through shares traded on NYSE Arca. The proposed rule change is subject to the US Securities Exchange Act of 1934, specifically Section 19(b)(1) and Rule 19b-4, which require the US SEC to evaluate whether the proposal aligns with investor protection and market integrity standards. The US SEC’s notice highlights that the proposal was amended to address initial concerns, with Amendment No. 1 superseding the original filing. The public comment period, facilitated through the US SEC’s website, reflects the agency’s commitment to transparency and stakeholder input. The decision to extend the review period indicates the complexity of assessing cryptocurrency trusts, given their volatility and regulatory challenges.
The timeline for the US SEC’s decision began with the proposal’s publication on 12 February 2025. On 11 March 2025, the US SEC extended the initial review period, designating 13 May 2025 as the deadline to approve, disapprove, or initiate proceedings. On 13 May 2025, proceedings were initiated under Section 19(b)(2)(B) of the US Securities Exchange Act to further evaluate the proposal. The US SEC is required to issue a final decision within 180 days from 12 February 2025, setting a deadline of 11 August 2025. However, citing the need for additional time to consider the proposal’s implications, the US SEC has extended this period by 60 days to 10 October 2025. This extension aims to ensure a thorough assessment of the Grayscale Litecoin Trust’s compliance with regulatory standards and its potential impact on investors and markets. From a legal perspective, this extension is authorised under Section 19(b)(2) of the US Securities Exchange Act, allowing the US SEC to balance expediency with rigorous scrutiny.
The implications of this decision are significant for investors and the crypto currency industry. Approval of the Grayscale Litecoin Trust could enhance mainstream adoption of Litecoin by providing a regulated investment vehicle, potentially attracting institutional investors. However, disapproval or prolonged scrutiny may signal ongoing regulatory caution regarding cryptocurrency products. The US SEC’s careful approach reflects its mandate to protect investors while navigating the evolving landscape of digital assets. Stakeholders can access comments on the proposal at the US SEC’s dedicated webpage, ensuring continued public engagement.
(Source: https://www.sec.gov/files/rules/sro/nysearca/2025/34-103574.pdf)
