Nasdaq rule changes hit crypto stocks

Nasdaq is tightening its listing regulations for cryptocurrency-linked companies by requiring shareholder consent for stock issuance used to purchase crypto. Once the rules were announced, shares of crypto companies declined. 

The U.S. exchange announced the changes on September 3, 2025, framing them as a way to enhance investor protection and reduce risky financing practices. The move aims to enhance investor protection and curb complex financing methods that could mask risks. Nasdaq noted in its release: 

The actions announced today follow Nasdaq’s proactive review of trading activity, particularly emerging patterns associated with potential pump-and-dump schemes in U.S. cross-market trading environments. The proposed updates are also reflective of how market dynamics and company valuations have evolved over time, prompting the need to recalibrate Nasdaq’s minimum liquidity standards to suit today’s environment.

Nasdaq’s proposed reforms also include higher financial thresholds for new listings, such as requiring a minimum public float market value of $15 million and accelerating delisting procedures for companies valued under $5 million. For firms based in China, the rules would require at least $25 million raised in public offerings. The changes respond to concerns about low liquidity and the risk of manipulative trading, particularly in small-cap and Chinese listings.

The rules directly affect crypto companies. Deals involving digital asset purchases or major business shifts now require stronger disclosures and sometimes shareholder approval. Shares of Strategy (MSTR), Circle (CRLC), Coinbase (COIN) and others dropped after the news.

According to a release from Nasdaq, the exchange has submitted the proposed rule changes to the SEC for review. If approved, Nasdaq plans to implement updates to the initial listing requirements promptly.