Key facts
- The SEC approved a Nasdaq rule modification concerning cryptocurrency investment products.
- Bitcoin, Ether, XRP, and Solana have been designated as digital commodities.
- The rule change allows for flexibility in fund management, permitting up to 15% of a fund's net asset value to include assets that may not fully meet all listing requirements.
- This designation aligns with previous interpretations by the SEC and CFTC classifying these assets as crypto commodities.
- The approval is specific to Nasdaq Texas's listing rules and not a new federal commodity law.
The U.S. Securities and Exchange Commission (SEC) has approved a significant rule modification on the Nasdaq exchange, officially designating Bitcoin, Ether, XRP, and Solana as digital commodities. This decision, made under SEC Order No. 34-106268, allows for accelerated approval of Nasdaq Texas, LLC's amendment to Rule 5711(d), which governs Commodity Based Trust Shares.
The adjusted framework introduces a formal definition of "digital commodity" into Nasdaq Texas rules and grants fund managers increased flexibility. This includes allowing eligible listing products to incorporate assets that may not meet all standard requirements, up to a limit of 15% of a fund's net asset value. The SEC's order cited a multi-asset trust including Bitcoin, Ether, Solana, and XRP as an example of digital commodities meeting current criteria.
This regulatory development follows a trend of U.S. agencies moving towards clearer classifications for digital assets, with the CLARITY Act also under consideration. Earlier interpretations by the SEC and Commodity Futures Trading Commission (CFTC) had already classified Bitcoin, Ether, Solana, and XRP as crypto commodities. While this Nasdaq Texas approval pertains to exchange listing structures rather than new federal law, it is expected to influence how investment firms manage crypto-based products.
The timing of this framework aligns with a surge in demand for regulated crypto investment products, including the recent opening of institutional access via spot crypto ETFs. The inclusion of XRP in this commodity-based trust framework, alongside Bitcoin, Ether, and Solana, marks a notable step. This regulatory shift precedes a key period for U.S. crypto legislation, with the CLARITY Act slated for Senate consideration in September, aiming to establish a more comprehensive regulatory regime for digital assets.