The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Canary PENGU ETF proposal, which involves PENGU tokens and Pudgy Penguins NFTs. The SEC has initiated an Order Instituting Proceedings to assess whether to approve or disapprove the proposal, extending the review period to gather more public comments and ensure compliance with regulatory standards. This procedural delay, involving the Cboe BZX Exchange's application, highlights the ongoing regulatory scrutiny of hybrid asset ETFs. The SEC's focus remains on maintaining market integrity and investor protection, reflecting broader challenges in approving crypto-exposed ETFs. This move does not imply an automatic denial but underscores the complexities of navigating crypto-assets within regulatory frameworks.