The U.S.Securities and Exchange Commission (SEC) has once again pressed pause on key crypto investment products,delaying its decision on two spot crypto exchange traded funds (ETFs).Investors and institutions alike are watching closely,as these rulings could shape the trajectory of altcoin based ETFs and the broader crypto market.
What Happened The Essentials
In its latest move,the SEC postponed decisions on two highly anticipated spot ETFs:
Canary Spot Pudgy Penguins (PENGU) ETF now facing a final deadline of October 12, 2025.
Grayscale Spot Cardano (ADA) ETF extended to October 26,2025,marking the final possible date for a ruling.
These delays highlight the regulator’s cautious stance even as investor demand for diversified crypto investment vehicles grows.
Why the Delay? Exploring Regulatory Concerns
The SEC explained that more time is needed to assess the proposals across several dimensions,including:
Market stability and resistance to manipulation.
Custody protocols to safeguard investor fund.
Surveillance-sharing agreements with exchange to ensure transparent trading.
Disclosure and compliance standards aligned with traditional securities law.
These concerns are consistent with the SEC’s broader risk averse approach toward crypto ETFs,especially those tied to altcoin rather than Bitcoin or Ethereum.
Market Reaction & Price Impact
The market response was swift.
PENGU (Pudgy Penguins token) plunged by 12.65% in the 24 hours following the announcement,reflecting investor disappointment over further delays.
Cardano (ADA),meanwhile,saw a spike in trading activity.While price action was more muted compared to PENGU ADA holders remain cautious as the October deadline approaches.
The contrasting reactions underscore the different levels of market maturity and investor confidence between meme inspired tokens like PENGU and established altcoins like ADA.
A Pattern of ETF Delays
This isn’t an isolated case.The SEC has repeatedly extended decision timelines on multiple crypto ETFs in recent months.
WisdomTree’s Spot XRP ETF decision has been delayed until October 24, 2025.
Applications tied to Solana (SOL) and other altcoins have also been pushed into later review cycles.
By bunching these deadlines in October,the SEC has effectively created a “make-or-break” window for multiple crypto products.
What This Means for Investors
For investors, the SEC’s postponement sends mixed signals:
Short term volatility is expected as deadlines approach,particularly in speculative altcoins like PENGU.
Institutional hesitation may persist,as regulated ETF products remain in limbo.
Some analysts interpret the delays as a sign of progress,arguing that the SEC is finalizing its framework before greenlighting a wave of products.
Looking Ahead: Why October Matters
October 2025 is shaping up to be a pivotal month:
October 12: Canary’s Pudgy Penguins (PENGU) ETF decision.
October 24: WisdomTree’s XRP ETF ruling.
October 26: Grayscale’s Cardano (ADA) ETF final deadline.
The cluster of rulings could mark the first wave of altcoin based ETF approvals or another series of rejections that reinforce the SEC’s cautious posture.
Regulatory Shifts & Broader Trends
Importantly,the SEC is not operating in a vacuum.In July 2025,the regulator released new crypto ETF disclosure guidance,requiring issuers to provide clearer information on:
Custody risks.
Structural safeguards.
Market transparency mechanisms.
This development is widely seen as the first step toward a formal regulatory framework for crypto ETFs,potentially paving the way for more streamlined approvals in the future.
Conclusion – Waiting for the Breakthrough
The SEC’s decision to delay yet again underscores its deliberate,risk managed approach to crypto ETFs.While frustrating for investors eager to see mainstream adoption these moves may help create a stronger regulatory foundation for the future.
For now,the market awaits October’s rulings,a period that could redefine the landscape for altcoin based ETFs and open new doors for institutional investment in digital assets