SEC Approves Nasdaq Rule Change for Crypto Investment Products
- The SEC has approved a rule modification on Nasdaq Texas, designating Bitcoin, Ethereum, Solana, and XRP as digital commodities.
- The new framework introduces an official definition of “digital commodity” and allows active management techniques for cryptocurrency investments.
- Eligible products can include assets that do not meet all listing requirements, with a maximum of up to 15% of a fund’s net asset value.
- The SEC’s classification aligns with previous interpretations from March, which also recognized these four cryptocurrencies as commodities.
- This approval responds to growing demand for regulated crypto investment products and supports the upcoming CLARITY Act legislation in the Senate.
The SEC’s approval enhances flexibility for fund managers in managing cryptocurrency investment products, indicating a shift towards clearer regulatory frameworks for digital assets.
With Bitcoin, Ethereum, Solana, and XRP now recognized as commodities under the new Nasdaq rules, this change could significantly impact how investment firms approach crypto-based products.(Source)
