SEC Approves Nasdaq Texas Rule 5711(d), Clearing Path for Multi-Asset Crypto ETFs

The U.S. Securities and Exchange Commission (SEC) has approved amendments to Nasdaq Texas Rule 5711(d), establishing a formal regulatory pathway for diversified cryptocurrency investment products. The ruling explicitly recognizes Bitcoin, Ethereum, Solana, and XRP as digital assets that meet the necessary standards for commodity-based exchange trusts.

Under the new guidelines, the SEC has introduced a "15% flexibility" rule for portfolio construction. This mandate requires that at least 85% of a qualified trust's assets be held in instruments that meet general listing requirements. The remaining 15% may be invested in other digital assets or securities that do not meet those primary requirements. Crucially, the ruling permits the creation of "actively managed Commodity-Based Trust Shares," a shift that allows fund managers to move beyond simple single-asset trackers or static index products.

Regulatory Context

For years, the SEC has faced significant challenges in classifying various cryptocurrencies, often oscillating between treating them as securities or commodities. This ambiguity has historically hindered the launch of sophisticated institutional products. By approving these specific rules for Nasdaq Texas, the agency is creating a functional regulatory bridge. This approach allows for the creation of institutional-grade ETFs that can hold a basket of assets without requiring a definitive, overarching federal legal ruling on the status of every individual token involved.

Market Implications

This move represents a major step toward the institutionalization of the broader digital asset market. By legitimizing Solana and XRP within the same commodity trust framework as Bitcoin and Ethereum, the SEC significantly reduces the regulatory risk for asset managers. The combination of active management provisions and the 15% flexibility rule allows for more sophisticated, diversified investment strategies. This is expected to increase the flow of institutional capital into the altcoin market, as managers can now build curated portfolios with a degree of agility previously unavailable under strict single-asset mandates.

What's Next

Market participants are now watching for the first wave of fund filings that utilize the active management and flexibility provisions. While the framework for these four major assets is now clear, it remains to be seen how the SEC will handle requests to include additional tokens within the 15% flexibility window. The industry will be monitoring whether this Nasdaq Texas precedent leads to a broader standardization of commodity-based trusts across other major U.S. exchanges.