US SEC cryptocurrency regulatory framework expansion

The U.S. Securities and Exchange Commission (SEC) has expanded the regulatory framework for cryptocurrency-related investment products through rule changes and amendments.

In an approval for Nasdaq Texas LLC, the SEC introduced a formal definition of a ‘digital commodity’—described as an asset deriving value from the programmatic operation of a functional crypto system rather than the managerial efforts of others. This amendment allows for greater flexibility in fund composition, permitting commodity-based trust shares to hold up to 15% of their net asset value in assets that do not meet all standard eligibility requirements. The new rules also remove passive-management requirements, enabling the listing of actively managed crypto trust shares. Assets such as Bitcoin, Ethereum, Solana, and XRP have been identified as qualifying digital commodities.

Additionally, the SEC approved a rule amendment for the Cboe Options Exchange, allowing listed options on the WisdomTree Bitcoin Fund (BTCW). This provides institutional traders with regulated derivatives tools, such as hedging and volatility positioning, for managing exposure to Bitcoin-linked products.