SEC extends broader crypto ETP generic listing standards to Nasdaq Texas

What changed

The SEC's September 3 order, published September 9, approves Nasdaq Texas's amended Rule 5711(d). Qualifying commodity trust ETPs may use active management and hold a combined basket of up to 15% in digital commodities and securities that do not meet the ordinary generic eligibility criteria, with derivatives measured at gross notional value for the limitation. Sponsors must monitor the qualifying threshold daily, and active strategies face additional information-control and trading-halt safeguards. This extends standards previously approved at other exchanges to Nasdaq Texas; it does not approve every product or determine suitability.

Who it affects

• Sponsors seeking Nasdaq Texas listings for crypto trust ETPs
• Advisers evaluating actively managed or diversified crypto ETPs
• Broker-dealers and service providers supporting those listings

What is still open

• Which products will list under the amended Nasdaq Texas standards
• How individual products will implement basket monitoring, valuation, liquidity, custody, and information controls
• Whether later legislation will require amendments to the exchange's digital-commodity definition

What it means for an advisor

• Include Nasdaq Texas in tracking of venues offering the expanded generic listing pathway.
• Review actual holdings, derivative exposure, management discretion, and liquidity rather than assuming generic listing implies a fully conforming passive portfolio.
• Check product disclosures and sponsor controls for the 15% basket and information-related trading halts before completing product diligence.

Previous interpretation

The published July 29 Cboe BZX approval described the 15% basket and active-management expansion while leaving matching approvals at other exchanges unresolved. The September 3 order confirms matching standards for Nasdaq Texas.