Frank Nez 
On September 4, 2025, Nasdaq announced stricter listing standards aimed at curbing stock manipulation and enhancing market integrity, with a particular focus on thinly traded stocks and Chinese firms.
The exchange operator introduced a higher minimum public float requirement of $15 million for new listings under its net income standard, up from $5 million, and a $25 million minimum public offering proceeds requirement for Chinese companies.
Additionally, Nasdaq proposed an accelerated process to suspend and delist companies with a market value below $5 million, addressing concerns about volatile price swings and pump-and-dump schemes.
Reuters reported that these changes, pending SEC approval, come amid a surge in U.S. IPOs, including a $411 million debut by Chinese tearoom chain Chagee in April 2025.
Meanwhile, retail investors, particularly those involved with AMC, GameStop, and MMTLP, have intensified their push for transparency, citing past market abuses and regulatory failures as they advocate for fairer trading practices.
Details of Nasdaq’s New Rules
Nasdaq’s proposed rules, submitted to the U.S. Securities and Exchange Commission (SEC) on September 3, 2025, aim to improve liquidity and protect investors from manipulation.
The exchange will require new listings under the net income standard to maintain a $15 million market value of public float, ensuring a broader shareholder base to stabilize trading, per Reuters.
For Chinese firms, a $25 million minimum public offering proceeds threshold addresses concerns about financial transparency and cross-border liquidity risks, reflecting ongoing regulatory scrutiny, per AInvest.
An accelerated delisting process will suspend companies with a Market Value of Listed Securities (MVLS) below $5 million within 60 days of SEC approval, reducing opportunities for speculative volatility.
John Zecca, Nasdaq’s Executive Vice President and Global Chief Legal, Risk & Regulatory Officer, stated, “By increasing our standards for the minimum public float and the public offering raise in certain new listings, it provides a healthier liquidity profile for public investors, while still making emerging companies available to investors through our exchange.”
Nasdaq will continue referring potentially manipulative trading to the SEC and the Financial Industry Regulatory Authority (FINRA), in attempts to strengthen cooperation with domestic and international regulators.
The rules build on prior reforms.
In April 2025, Nasdaq required IPOs to meet market value thresholds solely from shares sold, excluding those held by selling shareholders, to boost liquidity.
Since 2022, companies going public must have at least 300 investors holding 100 shares each, totaling a minimum of $2,500, to prevent manipulation.
Retail Investors’ Fight for Transparency
Retail investors, particularly those invested in AMC Entertainment Holdings, GameStop, and MMTLP (Meta Materials Preferred Shares), have been vocal advocates for market transparency, driven by experiences with alleged manipulation.
The 2021 GameStop short squeeze, fueled by retail traders on platforms like Reddit’s r/WallStreetBets, saw the stock surge from $17 to $500 due to coordinated buying against short sellers, exposing vulnerabilities in market structures.
AMC followed a similar trajectory, with retail investors rallying around “meme stocks” to challenge hedge fund short positions.
However, subsequent price crashes and trading halts raised suspicions of market rigging, prompting demands for regulatory reform.
MMTLP investors faced a unique ordeal when trading was halted in December 2022 after a spin-off from Meta Materials, with FINRA’s U3 halt preventing sales and leaving shareholders unable to access funds, as first reported by FrankNez Media.
A petition on Change.org, garnering over 60,000 signatures by September 2025, accused FINRA of enabling manipulation by hedge funds and demanded an investigation into the halt.
Investors on X have called for SEC action, alleging “naked shorting” and lack of transparency.
These groups have pushed for clearer disclosure of short interest, synthetic shares, and market maker activities.
The SEC’s 2023 adoption of Rule 13f-2, requiring institutional investors to report short positions, was partly a response to retail pressure.
AMC and GameStop investors also continue to use X to amplify their cause.
Economic and Market Context
Chinese firms, with over 100 listed in the U.S. and a $1 trillion market value as of March 2025, face heightened scrutiny after cases like Regencell Bioscience’s 82,000% surge and Pheton Holdings’ 90% crash, per AInvest.
The Public Company Accounting Oversight Board’s 2022 access to Chinese auditors eased some tensions, but Nasdaq’s rules reflect caution.
Nasdaq’s changes aim to restore confidence after retail investors suffered losses from volatile Chinese IPOs, according to Reuters.
For AMC, GameStop, and MMTLP investors, the rules could reduce risks of pump-and-dump schemes but do little to address past grievances.
The accelerated delisting process may also limit speculative opportunities, pushing retail investors toward diversified portfolios.
As the 2026 midterms approach, the interplay of economic policy and market regulation will shape investor sentiment and Trump’s political capital.
Also Read: Hedge Funds Continue to Bet Against America, Sparking Economic Instability Concerns
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