Stock Exchange Cracks Down on Companies Buying Crypto with Investor Money

If a company on the Nasdaq stock exchange wants to raise money from investors to buy cryptocurrency, it’s now going to face tougher rules. A new report says the exchange is tightening its oversight of this popular practice.

Nasdaq is now requiring these companies to get approval from their shareholders and to be more open about their plans. If they don’t follow the new rules, they could be kicked off the exchange. This news caused the stock price of several companies known for holding crypto to drop immediately.

The crackdown comes as this strategy has exploded in popularity. Since January, over 150 companies have announced plans to raise a staggering $98 billion to buy crypto, a huge jump from previous years. Regulators are now stepping in to ensure the process is transparent and fair for all investors.