SEC Labels BTC, ETH, XRP, SOL as Digital Commodities

The SEC has approved a rule change that labels Bitcoin (BTC), Ethereum (ETH), XRP, and Solana as digital commodities. The order applies to a Nasdaq Texas listing rule and gives fund managers more flexibility in building crypto products.

The SEC used a multi-asset trust holding these four assets as an example of what meets the criteria for digital commodities. The update creates an official definition of 'digital commodity' inside Nasdaq Texas rules, allowing up to 15% of a fund's net asset value to include assets that don't yet meet every listing requirement.

The timing is significant as it coincides with the CLARITY Act, which aims to set clearer rules for digital assets across the board. This development may lead to more regulated ways for investors to get exposure to these four coins through ETFs and trusts.