Nasdaq, one of the largest stock exchanges globally, has proposed new listing rules concerning digital assets. These changes may affect both major players and smaller companies in the market.
Changes in Listing Rules
The new updates announced include raising the minimum capitalization for new companies to $15 million and expediting delisting for those that do not comply.
Additionally, a $25 million minimum is proposed for new listings of companies operating in China.
Market and Company Impact
According to Brandon Ferrick, general counsel at Douro Labs, the new rules may create advantages for larger, well-managed firms, while smaller players could find it challenging.
"You can expect the best firms to trade at a premium because weaker companies will be washed out of the market," Ferrick states. He also notes that new requirements may increase the cost of shell companies, raising the barrier to entry.
Future Steps for Nasdaq
Nasdaq is submitting the proposed rules to the SEC for review, and if approved, plans to promptly implement the new listing requirements. The exchange is actively trading stocks and options, handling over 49 billion shares in monthly trading volume.
With the proposed changes to Nasdaq’s listing rules, larger companies may gain competitive advantages, while smaller players will find it more challenging to enter the digital asset market.
