Mysten Labs, the developer of the Sui blockchain, met with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force on Sept. 9. The firm was joined by legal representatives from Sidley Austin LLP. The meeting came at a time when the SEC is reviewing applications for spot exchange-traded funds (ETFs) that would directly hold SUI tokens.
An ETF is an investment fund that trades on stock exchanges, like shares. A spot crypto ETF is backed by the actual cryptocurrency it tracks, not just futures contracts. This means a spot SUI ETF would hold SUI tokens and follow their real-time market price. For investors, it provides regulated exposure without the need to manage wallets or trade on crypto exchanges.
Mysten Labs highlighted Sui’s design as a high-performance blockchain that processes transactions quickly and cheaply while maintaining security. The company emphasized that the network has avoided major security incidents since launch. In earlier written comments to the SEC in May 2025, Mysten Labs argued that regulators should classify tokens based on their utility and proposed that the Commodity Futures Trading Commission (CFTC) take part in digital asset oversight.
21Shares and Canary Lead ETF Applications
Two major asset managers are competing to launch the first spot SUI ETF. Canary Capital filed its application on March 17, 2025. 21Shares followed with an S-1 registration on April 30, then submitted a 19b-4 filing via Nasdaq on May 23. The 21Shares proposal would track the CME CF Sui-Dollar Reference Rate, a benchmark price for SUI, with Coinbase Custody and BitGo acting as custodians for the underlying tokens.
The SEC formally moved Canary’s application into “institution of proceedings” in July 2025. This step means the regulator has opened the application to public comments and is conducting a detailed review. For 21Shares, the SEC has delayed its decision several times, setting a final deadline of December 21, 2025. Analysts believe approval could come sooner, possibly in October, if the commission finalizes its work on new crypto ETF listing rules.
The SEC is currently developing “generic listing standards” with major U.S. exchanges such as Nasdaq, NYSE, and CBOE. These rules would make it easier to approve future crypto ETFs by creating a common framework. Until that framework is complete, approvals for SUI and other altcoin ETFs—including Solana, XRP, and Cardano—remain on hold. The current wave of engagement also comes as the Trump administration has pressed for clearer crypto regulations.
SUI Price Holds Gains as Approval Timeline Extends
Additionally, the possibility of an ETF has already influenced token’s market performance. The SUI price rose about 88% in July 2025 and is now trading near $3.50, with intraday movements between $3.43 and $3.56. Analysts such as Ali Martinez expect SUI to climb above $5 if an ETF is approved, with some short-term forecasts pointing to $6.
Grayscale Research described Sui in a July 2025 report as a blockchain designed for consumer-scale applications. Built by former Meta engineers, it targets mainstream adoption with use cases in decentralized finance, NFTs, gaming, and enterprise solutions. Mysten Labs has also proposed that the SEC allow “exemptive relief” for legacy blockchain projects, where compliance could be achieved through self-certification and regular disclosures rather than full securities registration.
The SEC has scheduled a roundtable on October 17, 2025, to discuss digital asset policy, focusing on financial surveillance and privacy. This event may influence the timeline for ETF approvals.
