SEC seeks comment on NYSE Arca’s 85% crypto listing rule

The U.S. Securities and Exchange Commission on Monday asked for public comment on a proposed NYSE Arca rule change that would alter how some crypto commodity exchange-traded products are listed. The SEC published a notice opening the comment period after NYSE Arca filed the amendment to its generic listing standards for Commodity-Based Trust Shares.

Under the proposed rule, at least 85% of a trust’s net asset value would need to be invested in assets that already meet the exchange’s surveillance-linked eligibility criteria. Up to 15% of a trust’s NAV could be held in other assets that do not independently qualify for listing, provided the trust complies with the rest of the exchange’s rules, the filing states.

The filing would change how derivatives are measured for the eligibility test. Listed and over-the-counter derivatives would be counted using aggregate gross notional value rather than market value when calculating whether a product meets the 85% threshold. NYSE Arca included examples to illustrate the proposed method: a trust holding Bitcoin, Ether, Solana and XRP alongside a small sleeve of non-qualifying digital assets would pass the 85% test if about 95% of its NAV met the standards; a trust composed of Bitcoin and OTC call options on a spot Bitcoin ETF would fall short if roughly 71% of its exposure qualified under the proposed measurement.

The proposal also narrows the exchange’s definition of “commodity” for generic listings and explicitly excludes non-fungible assets and collectibles from that category. The exchange noted it could seek separate approvals for products that include those asset types at a later date.

The SEC’s notice asks market participants and the public to submit comments on the filing. The agency will review the feedback and decide whether to approve, modify or disapprove the proposed rule change as part of its standard rule-review process.

If adopted, the amended standards would affect how issuers design crypto commodity exchange-traded products and how qualifying exposure is calculated for compliance with listing rules. Counting derivatives by gross notional changes the measurement of exposure for products that use derivatives alongside holdings of underlying assets, according to the examples in the filing.

Since Paul Atkins was sworn in as SEC chairman in April 2025, the agency has advanced several policy initiatives addressing digital assets, including a proposed crypto safe harbor, coordination with the Commodity Futures Trading Commission on digital asset guidance, and changes to how certain crypto trading interfaces are treated for broker registration. The SEC has also publicly acknowledged problems in some prior enforcement actions.

Market participants and industry groups now have the chance to file comments with the SEC during the agency’s comment period before a final decision is issued.