In a development that could influence crypto listings, Nasdaq has won broader discretion to reject IPO applications judged to carry manipulation risk, a measure quickly approved by the SEC last Friday. The rule empowers Nasdaq to block offerings when regulatory cooperation is lacking, when underwriters, brokers, lawyers, or audit firms are tied to questionable transactions, or when there are concerns about the integrity of management or major shareholders.

This framework targets the post-listing price volatility that has plagued many small IPOs in recent years. Data show that half of Nasdaq IPOs raised less than $15 million in the past year, with most declines exceeding 35% within 12 months.

For crypto and blockchain firms seeking public exposure, the tighter gatekeeping could raise listing standards and sharpen governance and disclosure requirements, potentially boosting investor protection while raising the bar for smaller issuers.