SEC stays Nasdaq MVLS delisting rule
Analysis based on 6 articles · First reported Jul 31, 2026 · Last updated Jul 31, 2026
The stay removes the immediate threat of delisting for small-cap Nasdaq companies with low market values, providing temporary relief and reducing regulatory overhang. Netcapital and similar issuers gain time to improve their market capitalization and compliance, though uncertainty remains pending the Commission's final review.
On July 22, 2026, the staff of the United States — United States Securities and Exchange Commission's Division of Trading and Markets, acting under delegated authority, approved a Nasdaq rule change (SR-NASDAQ-2026-004) that would require listed companies to maintain a market value of listed securities (MVLS) of at least $5 million. Under the rule, companies falling below this threshold for 30 consecutive business days would face immediate suspension and delisting, without a cure period or stay pending appeal. The proposal drew extensive criticism from small-cap issuers and advisors. On July 29, 2026, the SEC's Office of the Secretary notified Nasdaq that the Commission had received petitions for review, automatically staying the rule pending full Commission review. Netcapital, a Nasdaq-listed fintech company, welcomed the stay, stating it provides clarity and allows the company to continue its turnaround plan. The stay is procedural and the Commission may ultimately affirm, modify, or set aside the rule.
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