SEC Clears Nasdaq Texas Rule Update Adding "Digital Commodity" Definition for Crypto ETP Listings

The U.S. Securities and Exchange Commission approved a Nasdaq Texas rule change that formally introduces a "digital commodity" definition into the exchange's listing standards for crypto exchange-traded products, according to an SEC order dated 3 September 2026. The commission granted accelerated approval to a Nasdaq Texas LLC filing updating Rule 5711(d), the provision governing Commodity-Based Trust Shares. Rule 5711(d) changes filed on 20 August 2026 include three updates to the generic listing standards: - A commodity-based trust share may invest up to 15% of net asset value in holdings that do not meet the existing eligibility tests, provided those holdings are digital commodities or certain securities. - The rulebook now includes a defined term for "digital commodity." - The prior passive-management requirement is removed, allowing actively managed crypto trust shares to list under the same standard. The requirement that at least 85% of a fund's net asset value be invested in assets that already qualify remains in place. Under the new language, a digital commodity is defined as a digital asset whose value is derived from the programmatic operation of a functional crypto system and from supply and demand, rather than from an expectation of profits based on the managerial efforts of others. Nasdaq Texas said the definition draws on joint SEC-CFTC interpretive guidance that took effect on 23 March 2026, and indicated it would file updates to align the term if Congress adopts a statutory definition. The SEC order cites Bitcoin, Ether, Solana and XRP as assets that already qualify as eligible commodities. It also notes the 15% allowance is consistent with thresholds the SEC has approved for diversified digital commodity ETPs, including the Grayscale Digital Large Cap Fund. Nasdaq Texas said the revisions are intended to provide investors with a transparent, regulated way to gain exposure to commodities and digital commodities. The approval comes as crypto issuers broaden Nasdaq-linked product pipelines. Evernorth's XRP treasury recently cleared an SEC step as it pursues a Nasdaq listing. Grayscale, meanwhile, launched the first U.S. Zcash ETF on NYSE Arca in August. The Nasdaq Texas proposal is materially identical to a rule the SEC approved for The Nasdaq Stock Market in July, extending the same framework across Nasdaq venues.