On July 27, 2026, the SEC issued Release No. 34-105995, approving Nasdaq's proposal to amend its generic listing standards for Commodity-Based Trust Shares. These standards determine when certain investment products can be listed without requiring an individual SEC rule filing for each new fund.

By expanding these standards, the SEC aims to reduce regulatory delays for products that already satisfy previously approved investor protection requirements while preserving market integrity.

A New 15% Flexibility Buffer

One of the most notable changes is the introduction of a 15% portfolio buffer.

Previously, virtually all holdings within a Commodity-Based Trust had to satisfy Nasdaq's existing eligibility requirements. Under the amended rule:

• Up to 15% of a fund's net asset value (NAV) may consist of digital commodities or other securities that do not independently meet Nasdaq's generic listing criteria.

• Derivatives included within this allocation are measured using their gross notional value.

• The remaining 85% of the portfolio must continue to satisfy Nasdaq's approved surveillance and listing standards.

This change reflects recent SEC approvals of diversified crypto investment products that already incorporated limited allocations to additional digital assets beyond Bitcoin and Ether.

Actively Managed Commodity-Based Funds Now Eligible

The rule also removes a significant structural limitation by allowing actively managed Commodity-Based Trust Shares to qualify for Nasdaq's generic listing standards.

Previously, qualifying trusts generally had to passively track an index or reference asset. Under the new framework, actively managed portfolios may also qualify, provided they satisfy Nasdaq's investment objectives and applicable listing requirements.

This gives asset managers greater flexibility to:

• Adjust portfolio allocations as market conditions evolve;

• Manage risk more dynamically;

• Introduce innovative commodity and digital asset investment strategies without requiring separate SEC approval for every qualifying product.

Additional Investor Protection Measures

To accompany active management, Nasdaq must implement additional safeguards designed to promote market fairness.

The amended rules include:

• Mandatory trading halts if portfolio information is not disseminated equally to all market participants.

• Enhanced information-barrier ("firewall") procedures to prevent misuse of material non-public portfolio information.

• Continued daily portfolio transparency requirements.

• Ongoing surveillance obligations designed to detect fraud and market manipulation.

These provisions largely mirror protections already applicable to actively managed ETFs traded on Nasdaq.

Why This Matters

The SEC emphasized that these amendments build upon principles it has already approved in prior crypto ETF orders. Rather than creating an entirely new regulatory framework, the Commission is extending previously approved standards into Nasdaq's generic listing process.

The practical result is that qualifying products may now reach the market more quickly, since they can be listed under Nasdaq's generic standards instead of undergoing an individual SEC rule approval process each time. According to the SEC, this should:

• Reduce regulatory burdens for issuers;

• Encourage greater competition among investment products;

• Expand investor access to diversified commodity and digital asset investment vehicles; and

• Preserve robust surveillance and investor protection measures.

What This Means for the Digital Asset Industry

This approval represents another incremental—but meaningful—development in the SEC's evolving approach to digital asset regulation. Rather than treating every new crypto-related ETP as a unique regulatory matter, the Commission is increasingly incorporating established digital asset products into standardized listing frameworks.

For asset managers, exchanges, and institutional investors, the updated rules may reduce time-to-market for qualifying crypto investment products while providing greater regulatory certainty.

As digital asset markets continue to mature, this type of rule modernization signals the SEC's willingness to refine existing securities infrastructure to accommodate innovation without compromising investor protection.

Final Thoughts

Nasdaq's amended Rule 5711(d) demonstrates the SEC's continued movement toward a more predictable regulatory framework for commodity-based and digital asset investment products. While rigorous listing standards and surveillance requirements remain in place, the streamlined approval pathway could accelerate the development of the next generation of crypto ETPs and actively managed digital asset funds.

Businesses, fund sponsors, and digital asset market participants should continue monitoring these developments, as they represent another important milestone in the integration of digital assets into traditional capital markets.

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This blog post is for informational purposes only and is not legal advice. Please consult with a Launch Legal attorney regarding your specific situation.