Nasdaq Tightens Crypto Oversight for Listed Firms

Nasdaq is bolstering its oversight of publicly traded companies utilizing their stock sales to acquire crypto assets. The move aims to increase transparency and mitigate risks associated with cryptocurrency purchases. Companies will now be required to obtain shareholder approval before raising funds through new share issuance to buy digital currencies. This comes as Nasdaq seeks greater control over the financial strategies employed by listed firms, aiming to limit potential price manipulations and ensure greater accountability. Specifically, these efforts focus on addressing concerns regarding the potential for stock price inflation linked to crypto purchases and reducing volatility stemming from large cryptocurrency holdings.