Market News

UPS for Crypto as Nasdaq Tightens Regulations on Treasury Firms

The Nasdaq stock exchange is intensifying its scrutiny of companies engaging in significant cryptocurrency purchases to bolster their stock prices.

New requirements mandate that firms must obtain shareholder approval before selling new shares for crypto acquisitions, according to recent reports.

This regulatory step aims to enhance transparency and prevent misleading practices in the market.

Companies that fail to comply with these regulations risk being suspended or delisted from Nasdaq, adding pressure to already beleaguered crypto treasury names.

Recent price declines in major cryptocurrencies, such as Bitcoin and Ether, compound the challenges facing these firms.

Participants in the market have observed sharp declines in companies like KindlyMD and American Bitcoin, following the implementation of these regulations.

Moreover, additional scrutiny has led to market uncertainty, impacting stocks like Bitmine Immersion and Sharplink Gaming.

As Nasdaq assumes a more prominent regulatory role, companies are urged to make detailed disclosures regarding their crypto holdings.

This increased oversight reflects a broader regulatory trend, shifting the onus from federal regulators to stock exchanges.

Overall, these changes signal evolving dynamics for crypto-associated companies navigating the complexities of transparency and compliance in an increasingly cautious market.