The U.S. Securities and Exchange Commission (SEC) has delayed its decisions on the applications for exchange-traded funds (ETFs) related to the memecoin PENGU and Cardano, causing market concern.
Delayed Review of PENGU ETF
The SEC has extended the review period for the Canary Spot PENGU ETF filed by Canary Capital from August 28 to October 12, 2025. This ETF seeks to combine Pudgy Penguins memecoins with NFTs, raising compliance and valuation questions as the SEC prioritizes investor protection. Following the announcement, PENGU's price dropped by 11%, indicating growing investor caution.
Postponement of Cardano ETF Decision
The SEC also postponed its decision on Grayscale's Cardano ETF, intended to convert its ADA Trust into a spot ETF, moving the deadline from August 27 to October 26, 2025. The regulator expressed ongoing concerns regarding investor protections and market structure, reflecting a consistent approach to other altcoin-based ETFs.
Market and Industry Implications
These delays highlight the SEC's cautious stance toward ETFs involving altcoins or complex asset structures. Such regulatory uncertainty affects newer assets like PENGU and established ones like Cardano. Analysts suggest that a series of ETF decisions in October could expand institutional access to crypto assets.
The SEC's delayed decisions on the PENGU and Cardano ETFs underscore the regulator's current caution regarding investor protection and market structure, continuing to create uncertainty in the cryptocurrency space.
