SEC Grants Petitions for Review of Nasdaq’s New $5M MVLS Continued Listing Standard

As an update to our client alert initially published on , the Securities and Exchange Commission (“SEC” or “Commission”) announced on September 11, 2026 that it has granted petitions filed by the Small Public Company Coalition and Cemtrex, Inc. seeking Commission review of the SEC Division of Trading and Markets’ (the “Division”) July 22, 2026 delegated approval of Nasdaq’s new $5 million Market Value of Listed Securities (“MVLS”) continued listing requirement.

Importantly, the Commission ordered that the July 22 approval order remain stayed pending further order of the Commission. Accordingly, Nasdaq’s new $5 million MVLS continued listing requirement remains stayed and is not currently effective.

The Commission’s decision to grant review does not constitute a determination on the merits of the new rule or reverse the Division’s prior approval. Rather, the full Commission will now review the Division’s delegated approval action. As part of that process, the Commission has invited any party or other person to submit a written statement in support of or in opposition to the approval order. The SEC’s order provides that statements will be due 21 days after publication of the order in the Federal Register.

What Happens Next

Following the comment period, the Commission will consider the Division’s approval of the new MVLS requirement. The Commission may affirm, modify, reverse, set aside or remand the Division’s action. There is no prescribed timeline for the Commission to issue its decision.

In the meantime, the July 22 approval order will remain stayed unless the Commission orders otherwise. Nasdaq-listed companies, particularly companies approaching the $5 million MVLS threshold, should continue monitoring developments but are not currently subject to the new $5 million MVLS continued listing requirement.

Our team will continue to monitor the Commission’s review and provide updates regarding the rule’s status, effectiveness and implementation.