Nasdaq has mandated that listed companies obtain shareholder approval before issuing new shares to acquire cryptocurrencies, and must disclose fuller justifications and risk assessments for large-scale crypto purchases.

The exchange's enhanced oversight aims to guard investors, particularly retail traders, from underestimating the high volatility and speculative nature of cryptocurrencies. Companies must now explain why they are buying substantial amounts of crypto and articulate the associated financial, regulatory and market‐risk implications.

Under the new requirements, issued by Nasdaq earlier this month, firms proposing to issue equity to raise funds for crypto purchases must secure affirmative vote from their shareholders. Non‐compliance may result in trading suspension or delisting. Nasdaq is also tightening disclosure obligations: entities must show how much crypto they hold, the rationale for those holdings, and how they plan to manage the risks.

Architect Partners reports that over 120 US‐listed companies have announced plans to raise more than US$130-billion this year for cryptocurrency acquisitions, nearly 100 of which are listed on Nasdaq. Many of these firms have adopted“crypto-treasury” strategies-allocating a significant portion of their balance sheets to digital assets. Some high-profile companies have already attracted scrutiny for the size of their holdings and for the effects on shareholder dilution.

Nasdaq justifies the changes by citing investor protection. Wholesale accumulation of crypto assets can dramatically affect stock price volatility. There is concern that some retail investors may not fully grasp how crypto's price swings, regulatory uncertainty or tax treatment risk hurting returns, or causing losses.

Critics worry the new rules could slow innovation or deter companies considering crypto exposure. Companies accustomed to quickly buying digital assets may face delays because shareholder voting cycles are time-consuming and costly. Some argue that imposing blanket rules could punish well-prepared firms that already maintain strong governance, transparency, and risk controls.

Regulators such as the US Securities and Exchange Commission and the Commodity Futures Trading Commission have been increasing pressure on exchanges and firms around crypto disclosures, anti‐fraud measure and governance. Nasdaq's move aligns with broader regulatory momentum in financial markets toward more oversight of firms with substantial crypto exposure.

Arabian Post – Crypto News Network

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