The U.S. Securities and Exchange Commission (SEC) has given approval to a rule modification on the Nasdaq that pertains to investment products involving cryptocurrencies. Bitcoin, Ethereum, Solana and XRP were designated as digital commodities by the order that have the exchange’s current eligibility requirements.
The action was made in accordance with SEC Order No. 34-106268. It also provides accelerated approval for Nasdaq Texas, LLC to amend Rule 5711(d). Commodity Based Trust Shares traded on the exchange are subject to the rule.
SEC Expands Crypto Product Framework
The adjusted framework introduces an official definition of “digital commodity” in Nasdaq Texas rules. It also allows for some active management techniques involving cryptocurrencies.
The approved changes provide fund managers with additional flexibility, per the latest filing. Products that are eligible for listing may include assets that at the point of listing do not meet all the requirements. The allowance is not more than 15% of a fund’s net asset value.
In the SEC’s order, the agency offered as an example a multi-asset trust. Bitcoin, Ethereum, Solana and XRP are included in the example. All four assets are digital commodities that meet the current relevant criteria, the regulator said.
The transfer may provide asset managers with greater flexibility in their approach to crypto investment products. It also provides a better structure for investors who want to gain exposure to several digital assets.
Bitcoin, Ethereum, Solana, XRP Gain Regulatory Recognition
The SEC order comes on the heels of a number of regulatory developments concerning crypto assets. The U.S. regulators have been gradually moving toward a clearer classification of digital assets with the CLARITY Act in focus.
Earlier, a March interpretation from the SEC and Commodity Futures Trading Commission classified Bitcoin, Ethereum, Solana and XRP as crypto commodities. Other tokens in the larger list were Cardano, Avalanche, Dogecoin, Shiba Inu and Chainlink.
The recent approval by the NASDAQ in Texas is not a new federal commodity law. It applies to the listing structure of the exchange. Changing the classification might still affect investment firms’ handling of crypto-based products.
The framework comes on the heels of surging demand for regulated crypto investment products. Spot crypto ETFs have opened up institutional access to digital assets.
There is also increased exposure of XRP via ETFs. The Nasdaq Texas listing puts its trust along with Bitcoin, Ether and Solana in a commodity-based trust framework.
This regulatory change comes ahead of a key period for U.S. crypto legislation. The CLARITY Act will be up for consideration in the Senate later in September. The bill proposes to create a more comprehensive regulatory regime for digital assets.
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