SEC Stays Nasdaq’s New $5 Million Continued Listing Rule
The Securities and Exchange Commission (“SEC”) has stayed implementation of Nasdaq’s new $5 million Market Value of Listed Securities (“MVLS”) continued listing rule, temporarily pausing enforcement of the recently approved listing standard while the Commission considers additional proceedings.
Just last week, the SEC approved Nasdaq’s proposal, and the rule became effective immediately. The 30 consecutive trading day measurement period began on July 23, 2026, with the first companies potentially reaching the 30-day threshold on September 2, 2026. The SEC’s stay pauses that process pending further Commission action.
What the Stay Means
Implementation Is Temporarily Paused
The stay suspends implementation of the new MVLS continued listing standard while the SEC conducts further review. Companies will not be subject to delisting under the new rule during the stay.
The Rule Has Not Been Withdrawn
The stay does not permanently overturn or rescind the rule. The SEC may ultimately allow the rule to take effect, modify it, or take other action following its review.
Companies Should Continue Planning
Although enforcement has been paused, Nasdaq-listed companies—particularly those with lower market capitalizations—should continue monitoring their market value and evaluating financing, strategic, and compliance alternatives. If the rule ultimately becomes effective, companies that prepare in advance will be better positioned to respond.
Why It Matters
The proposed $5 million MVLS standard represents one of the most significant changes to Nasdaq’s continued listing framework in recent years. The SEC’s decision to stay the rule provides temporary relief for affected issuers while creating additional uncertainty regarding the future of the standard.
Lucosky Brookman will continue to monitor developments and provide updates as the SEC’s review progresses.
