Nasdaq Cracking Down on Digital Asset Treasury Firms: The Information

Nasdaq is tightening its oversight of companies using stock sales to hoard crypto, a move that could dampen the ongoing boom in crypto treasury plays. Nasdaq is now requiring shareholder votes for certain stock issuance plans, particularly when the end goal is buying crypto, The Information reports.

What’s the Scoop?

• New Hurdles: Nasdaq is reportedly mandating shareholder approval for some capital raises intended to fund crypto purchases. The policy could slow or derail deals that have so far relied on speed to ride market momentum.
• Growing Scrutiny: At least 124 U.S.-listed companies have announced plans to raise $133B this year to buy crypto, most of them listed on Nasdaq.
• Exchange as Gatekeeper: With federal regulators pulling back under the Trump administration, Nasdaq has emerged as a key enforcer. Nasdaq has the authority to suspend trading or de-list firms that don’t comply with its rules, adding a layer of risk to the current wave of speculative stock-token tie-ups.
• Potential market impact: The new requirements could delay deals and introduce legal uncertainty, the report notes, especially for firms racing to accumulate illiquid or low-float tokens, such as the Trump family’s WLFI and Story Protocol's IP.

Bankless Take:

Clamping the breaks on crypto's DAT craze could be catastrophic for high-flying stocks that have thrown multiples of their net worth into crypto assets without proper shareholder authorization. Although this story is still emerging, it may prove an important one to follow in the weeks ahead.