Blab Crypto
SEC Grants Nasdaq Texas Rule Change to Expand Crypto ETP Options with Digital Commodity Definition
The U.S. Securities and Exchange Commission approved a Nasdaq Texas rule change on September 3 2026 that adds a formal definition of a digital commodity to the exchange’s listing standards for commodity‑based trust shares. The amendment, filed by Nasdaq Texas LLC on August 20 2026, modifies Rule 5711(d) and allows trusts to hold up to 15 % of their net asset value (NAV) in assets that are digital commodities or certain securities, removes the passive‑management restriction, and requires that at least 85 % of a fund’s holdings remain in assets that already qualify under the existing standards.
The change is significant because it broadens the types of assets that can be included in Nasdaq‑listed crypto exchange‑traded products (ETPs). Under the new rule, a trust can now incorporate digital assets that meet the definition of a digital commodity while still maintaining the core requirement that the majority of the portfolio be composed of assets that satisfy the generic listing requirements. The 15 % buffer aligns with thresholds that the SEC has approved for diversified digital‑commodity ETPs such as the Grayscale Digital Large Cap Fund.
A key element of the amendment is the definition of a digital commodity. The rule states that a digital commodity is a digital asset that derives its value from the programmatic operation of a functional crypto system and from supply and demand dynamics, rather than from the expectation of profits from the managerial efforts of others. Nasdaq Texas said the definition was informed by the joint SEC‑CFTC interpretive guidance that took effect on March 23 2026. The guidance clarifies how the regulatory bodies view digital commodities and provides a framework for their inclusion in regulated products.
The rule explicitly names Bitcoin, Ether, Solana, and XRP as assets that already satisfy the exchange’s commodity‑based trust standards. By citing these widely traded tokens, the SEC signals that the rule applies to the most prominent digital commodities in the market. The amendment also removes the passive‑management requirement that previously limited commodity‑based trust shares to passive strategies. As a result, actively managed crypto trust shares can now list under the standard, opening the door for a new generation of actively managed ETPs that can adjust their exposure to digital commodities in response to market conditions.
Industry observers see the rule change as a catalyst for increased competition and product innovation on Nasdaq. The amendment arrives at a time when crypto issuers are expanding Nasdaq‑listed offerings. Evernorth’s XRP treasury recently cleared an SEC hurdle on its path to a Nasdaq listing, and Grayscale launched the first U.S. Zcash ETF on NYSE Arca in August 2026. The new rule is materially identical to a rule the SEC approved for the Nasdaq Stock Market in July, extending the framework across all Nasdaq venues. By allowing a broader range of assets and active management, the amendment is expected to attract more issuers, increase fundraising for crypto ETPs, and provide investors with more regulated vehicles for commodity and digital‑commodity exposure.
The rule change also reflects the evolving regulatory landscape for digital assets. The SEC’s decision follows the joint SEC‑CFTC interpretive guidance that clarified the status of digital commodities and the regulatory expectations for their inclusion in exchange‑traded products. Nasdaq Texas indicated that it would file to conform the term if Congress enacts a statutory definition, suggesting that the exchange is preparing for potential future legislative changes.
In summary, the SEC’s approval of the Nasdaq Texas rule change expands the eligibility criteria for commodity‑based trust shares, allowing a 15 % buffer of digital commodities and removing the passive‑management restriction. The amendment aligns with recent regulatory guidance, cites major digital commodities, and is expected to spur the launch of new Nasdaq‑listed crypto ETPs, including actively managed products. The rule’s implementation will likely increase competition, fundraising, and adoption in the crypto, ETF, and DeFi markets, while providing investors with a clearer, regulated framework for commodity and digital‑commodity exposure.
The change is significant because it broadens the types of assets that can be included in Nasdaq‑listed crypto exchange‑traded products (ETPs). Under the new rule, a trust can now incorporate digital assets that meet the definition of a digital commodity while still maintaining the core requirement that the majority of the portfolio be composed of assets that satisfy the generic listing requirements. The 15 % buffer aligns with thresholds that the SEC has approved for diversified digital‑commodity ETPs such as the Grayscale Digital Large Cap Fund.
A key element of the amendment is the definition of a digital commodity. The rule states that a digital commodity is a digital asset that derives its value from the programmatic operation of a functional crypto system and from supply and demand dynamics, rather than from the expectation of profits from the managerial efforts of others. Nasdaq Texas said the definition was informed by the joint SEC‑CFTC interpretive guidance that took effect on March 23 2026. The guidance clarifies how the regulatory bodies view digital commodities and provides a framework for their inclusion in regulated products.
The rule explicitly names Bitcoin, Ether, Solana, and XRP as assets that already satisfy the exchange’s commodity‑based trust standards. By citing these widely traded tokens, the SEC signals that the rule applies to the most prominent digital commodities in the market. The amendment also removes the passive‑management requirement that previously limited commodity‑based trust shares to passive strategies. As a result, actively managed crypto trust shares can now list under the standard, opening the door for a new generation of actively managed ETPs that can adjust their exposure to digital commodities in response to market conditions.
Industry observers see the rule change as a catalyst for increased competition and product innovation on Nasdaq. The amendment arrives at a time when crypto issuers are expanding Nasdaq‑listed offerings. Evernorth’s XRP treasury recently cleared an SEC hurdle on its path to a Nasdaq listing, and Grayscale launched the first U.S. Zcash ETF on NYSE Arca in August 2026. The new rule is materially identical to a rule the SEC approved for the Nasdaq Stock Market in July, extending the framework across all Nasdaq venues. By allowing a broader range of assets and active management, the amendment is expected to attract more issuers, increase fundraising for crypto ETPs, and provide investors with more regulated vehicles for commodity and digital‑commodity exposure.
The rule change also reflects the evolving regulatory landscape for digital assets. The SEC’s decision follows the joint SEC‑CFTC interpretive guidance that clarified the status of digital commodities and the regulatory expectations for their inclusion in exchange‑traded products. Nasdaq Texas indicated that it would file to conform the term if Congress enacts a statutory definition, suggesting that the exchange is preparing for potential future legislative changes.
In summary, the SEC’s approval of the Nasdaq Texas rule change expands the eligibility criteria for commodity‑based trust shares, allowing a 15 % buffer of digital commodities and removing the passive‑management restriction. The amendment aligns with recent regulatory guidance, cites major digital commodities, and is expected to spur the launch of new Nasdaq‑listed crypto ETPs, including actively managed products. The rule’s implementation will likely increase competition, fundraising, and adoption in the crypto, ETF, and DeFi markets, while providing investors with a clearer, regulated framework for commodity and digital‑commodity exposure.
