Notice2026-01378
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove Restrictions on Certain Crypto Assets
Primary source
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Published
January 26, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 16 (Monday, January 26, 2026)</title>
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[Federal Register Volume 91, Number 16 (Monday, January 26, 2026)]
[Notices]
[Pages 3262-3264]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01378]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104647; File No. SR-BX-2026-002]
Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Remove
Restrictions on Certain Crypto Assets
January 21, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 7, 2026, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the Exchange. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Position Limit Rules and
Exercise Limit Rules in connection with the following options overlying
Exchange-Traded
[[Page 3263]]
Fund Shares: iShares Bitcoin Trust ETF, the Grayscale Bitcoin Trust,
the Grayscale Bitcoin Mini Trust BTC, the Bitwise Bitcoin ETF, Fidelity
Wise Origin Bitcoin Fund, the ARK21Shares Bitcoin ETF, the VanEck
Bitcoin ETF, the iShares Ethereum Trust ETF, the Fidelity Ethereum
Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the
Grayscale Ethereum Mini Trust.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/bx/rulefilings">https://listingcenter.nasdaq.com/rulebook/bx/rulefilings</a>,
and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
BX proposes to amend Options 9, Section 13, Position Limits; and
Options 9, Section 15, Exercise Limits in connection with the following
options overlying Exchange-Traded Fund Shares: iShares Bitcoin Trust
ETF, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust BTC,
the Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, the
ARK21Shares Bitcoin ETF, the VanEck Bitcoin ETF, the iShares Ethereum
Trust ETF, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the
Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust
(collectively ``the Crypto Assets''). Each change will be described
below.
Background
On October 27, 2025, Nasdaq ISE, LLC's (``ISE'') proposal to permit
certain options on Exchange-Traded Fund Shares that meet certain
generic requirements to be listed as a Commodity-Based Trust was deemed
approved.\3\ BX's Options 4 Listing Rules are incorporated by reference
to ISE. As amended, Options 4, Section 3(h)(vi) specifies that BX may
list and trade interests in a Commodity-Based Trust that meet the
generic criteria of The Nasdaq Stock Market LLC Rule 5711(d) provided
the trust holds a single crypto asset.\4\ Further, a Commodity-Based
Trust that meets the requirements of Options 4, Section 3(h)(vi) must
also satisfy the following requirements: (A) the total global supply of
the underlying crypto asset held by the Commodity-Based Trust has an
average daily market value of at least $700 million over the last 12
months; and (B) the crypto asset held by the Commodity-Based Trust
underlies a derivatives contract that trades on a market with which the
Exchange has a comprehensive surveillance sharing agreement, whether
directly or through common membership in the Intermarket Surveillance
Group.
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\3\ See Securities Exchange Act Release No. 104210 (November 21,
2025), 90 FR 52727 (November 21, 2025) (SR-ISE-2025-08). See also
<a href="https://www.nasdaqtrader.com/MicroNews.aspx?id=OTA2025-48">https://www.nasdaqtrader.com/MicroNews.aspx?id=OTA2025-48</a>.
\4\ The term ``crypto asset'' means an asset that is generated,
issued and/or transferred using a blockchain or similar distributive
ledger technology network including, but not limited to, assets
known as ``tokens,'' ``digital assets,'' ``virtual currencies,'' and
``coins'' and that rely on cryptographic protocols. See Options 4,
Section 3(h)(3).
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Any option approved pursuant to Options 4, Section 3(h)(vi) is
subject to the position limits set forth in Options 9, Section 13, and
subject to the exercise limits set forth in Options 9, Section 15. The
Crypto Assets all qualify for listing pursuant to Options 4, Section
3(h)(vi). As such, similar to other options listed pursuant to Options
4, Section 3(h)(vi), the Crypto Assets should be subject to the
position limits set forth in Options 9, Section 13, and subject to the
exercise limits set forth in Options 9, Section 15.
Proposal
BX proposes to remove the 25,000 position and exercise limit
restrictions for Fidelity Wise Origin Bitcoin Fund, the ARK21Shares
Bitcoin ETF, the VanEck Bitcoin ETF, the iShares Ethereum Trust ETF,
the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale
Ethereum Trust, and the Grayscale Ethereum Mini Trust from Options 9,
Sections 13 and 15.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\6\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
(6)(b)(5) \7\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78(f)(b)(5).
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The Exchange's proposal to permit the Crypto Assets, which qualify
for listing pursuant to Options 4, Section 3(h)(vi), to be subject to
the position limits set forth in Options 9, Section 13, and subject to
the exercise limits set forth in Options 9, Section 15 similar to all
other options is consistent with the Act as this treatment promotes
just and equitable principles of trade.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The Exchange does not believe that the proposed rule change will
impose any burden on intra-market competition because the Crypto Assets
that qualify to be listed pursuant to Options 4, Section 3(h)(vi) would
be treated similar to all other options for purposes of position and
exercise limits.
The Exchange does not believe that the proposed rule change will
impose any burden on inter-market competition as the proposal is not
competitive in nature. The Exchange expects that all option exchanges
will adopt substantively similar proposals, such that the Exchange's
proposal would benefit competition. For these reasons, the Exchange
does not believe that the proposed rule change will impose any burden
on competition not necessary or appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
[[Page 3264]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative prior to 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, if consistent
with the protection of investors and the public interest, the proposed
rule change has become effective pursuant to Section 19(b)(3)(A)(iii)
of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange states that
waiver of the operative delay will allow the Exchange to treat Crypto
Assets in the same manner as all other options that qualify for listing
pursuant to Options 4, Section 3(h)(vi). The Exchange also states that
the proposal does not significantly affect the protection of investors
or the public interest because any Crypto Asset that qualifies for
listing pursuant to Options 4, Section 3(h)(vi) is subject to the
position and exercise limits set forth in Options 9, Sections 13 and
15. For these reasons, and because the proposal does not raise new or
novel regulatory issues, the Commission believes that waiver of the
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#0d7f786168206e6260606863797e4d7e686e236a627b"><span class="__cf_email__" data-cfemail="dcaea9b0b9f1bfb3b1b1b9b2a8af9cafb9bff2bbb3aa">[email protected]</span></a>. Please include
file number SR-BX-2026-002 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-BX-2026-002. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-BX-2026-002 and should be submitted on
or before February 17, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12) and (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-01378 Filed 1-23-26; 8:45 am]
BILLING CODE 8011-01-P
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