The U.S. Securities and Exchange Commission (SEC) has officially delayed its decision on a proposed rule change that would allow the listing and trading of the Canary’s Spot SUI ETF on the Cboe BZX Exchange.
The delay gives the Commission more time to evaluate the application and the issues surrounding the proposed exchange-traded fund (ETF). A spot ETF gives investors the ability to access crypto like SUI without owning the actual tokens.
What Is the Proposed Canary SUI ETF?
On April 8, 2025, the Cboe BZX Exchange filed a rule change request with the SEC. This request seeks approval to list and trade shares of the Canary SUI ETF under BZX Rule 14.11(e)(4), which covers Commodity-Based Trust Shares.
The proposed ETF is designed to track SUI, the native token of the Sui blockchain. If approved, this ETF would give investors exposure to SUI through traditional financial markets, without requiring them to directly hold the cryptocurrency.
SEC’s Extended Review Period
The proposed rule change was first published in the Federal Register on April 25, 2025. Under normal procedures, the SEC must take action within 45 days of publication — in this case, by June 9, 2025. However, according to Section 19(b)(2) of the Securities Exchange Act of 1934, the SEC can extend this period to a maximum of 90 days if more time is needed.
As outlined in the official SEC release (No. 34-103186), the Commission has decided to use this option. The new deadline to either approve, disapprove, or begin proceedings to evaluate the rule change is now July 24, 2025.
Why the Delay?
The SEC explained that the extension will allow additional time to fully consider the proposed rule change and the questions it raises. As of now, no public comments have been received on the application. The review will continue under the legal framework governing U.S. financial markets.
It is important to note that the SEC has not yet made a decision on the ETF’s approval and has not indicated any leaning toward approval or disapproval. The extension is a procedural step.
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