- SEC delays Canary Spot SUI ETF decision over market manipulation and investor protection concerns.
- SUI token drops amid ETF delay and $162M asset lockup from Cetus protocol exploit.
Once again, the U.S. Securities and Exchange Commission (SEC) has pushed back its decision on another ETF, i.e, the Canary Spot SUI ETF, leaving investors in uncertainty.
Filed by the Cboe BZX Exchange, the ETF aims to provide direct exposure to the SUI token, yet regulatory approval leaves the ETF still in limbo.
SEC pushes spot SUI ETF to July
In its notice on the 4th of June, the SEC cited ongoing concerns about potential market manipulation and inadequate investor protections as the primary reasons for the delay.
And now, the new deadline for a verdict is set for the 24th of July.
These concerns echo broader industry issues, as seen with Binance’s recent overhaul of its Alpha Points Program to address bot-driven manipulation.
Impact on SUI’s price
Now, while delays in ETF approvals are not unusual, they often dampen investor sentiment, especially in already fragile market conditions.
Needless to say, this postponement of the SUI ETF decision by the SEC has had a visible impact on SUI’s price, which fell by 1.41% over the past day and stood at $3.15.
Technical indicators such as the Relative Strength Index (RSI) and the MACD also pointed to a bearish trend, reinforcing the cautious mood among traders.
Cetus protocol hack fallout continues
Adding to the unease, the Sui network recently made headlines for another reason — validators reportedly locked up approximately $162 million in stolen assets connected to the recent Cetus protocol exploit.
This double blow of regulatory delay and security concerns has placed the project under intense scrutiny.
Analysts believe the SEC’s repeated delays underscore a broader hesitance to fully integrate crypto into the existing financial regulatory framework.
This cautious approach highlights the agency’s struggle to reconcile decentralized assets with rules designed for traditional markets.
Therefore, until comprehensive and tailored regulations are introduced, the SEC is likely to continue taking a slow and conservative stance.
