The U.S. Securities and Exchange Commission (SEC) has approved a rule modification on Nasdaq regarding investment products involving cryptocurrencies. Under SEC Order No. 34-106268, Bitcoin, Ethereum, Solana, and XRP were designated as digital commodities that meet the exchange's current eligibility requirements.
The order grants accelerated approval for Nasdaq Texas, LLC to amend Rule 5711(d), which governs Commodity Based Trust Shares traded on the exchange. The updated framework introduces an official definition of "digital commodity" into Nasdaq Texas rules and permits certain active management techniques involving cryptocurrencies.
Fund Manager Flexibility and Multi-Asset Trusts
The approved changes offer fund managers additional flexibility. Eligible listing products may include assets that do not meet all requirements at the point of listing, provided the allowance does not exceed 15% of a fund’s net asset value.
In its order, the SEC cited a multi-asset trust as an example, noting that Bitcoin, Ethereum, Solana, and XRP are included as digital commodities meeting relevant criteria. This adjustment aims to give asset managers greater flexibility for crypto investment products and offer a structured approach for investors seeking exposure to multiple digital assets.
Regulatory Context
The SEC order follows prior regulatory developments in the United States. A March interpretation from the SEC and the Commodity Futures Trading Commission previously classified Bitcoin, Ethereum, Solana, and XRP as crypto commodities, alongside tokens such as Cardano, Avalanche, Dogecoin, Shiba Inu, and Chainlink.
The Nasdaq Texas approval applies specifically to the exchange's listing structure rather than enacting a new federal commodity law, though the classification changes may influence how investment firms handle crypto-based products. The framework coincides with growing demand for regulated crypto investment products, institutional access via spot crypto ETFs, and upcoming U.S. crypto legislation, including the CLARITY Act scheduled for consideration in the Senate in September.
