The U.S. Securities and Exchange Commission has opened a public comment process on a proposed NYSE Arca rule change that could materially reshape how crypto and commodity trust products qualify for exchange listings. At the center of the proposal is a new requirement that at least 85% of a trust’s net asset value be invested in assets that already meet the exchange’s eligibility standards under Rule 8.201-E, the generic listing framework for commodity-based trust shares.
The filing, published by the SEC on April 27, 2026, signals a potentially meaningful shift in the listing environment for future crypto-linked products, including structures tied to bitcoin, ether, solana, and XRP. While the proposed framework could provide a clearer route for more products to come to market, it would also impose tighter portfolio construction limits, especially for trusts that rely heavily on derivatives or other assets outside existing standards.
An 85% threshold with limited room for non-qualifying assets
Under the proposal, a qualifying trust would need to keep at least 85% of its net asset value in assets already permitted by the current rule. Those assets may include qualifying commodities, commodity-based assets, securities, cash, and cash equivalents. The remaining 15% could be allocated to assets that do not independently satisfy the rule’s eligibility criteria, as long as the trust remains otherwise compliant.
That structure is important because it introduces some flexibility without abandoning the exchange’s reliance on a standardized listing route. In practical terms, issuers would still be able to include a modest slice of non-qualifying exposure in a product, but only within a clearly defined limit. For trusts seeking to list through the generic path rather than through a bespoke approval process, the 85% line could become a decisive threshold.
NYSE Arca framed the proposal as a way to allow more products to list while preserving a majority exposure to assets that support market surveillance and regulatory monitoring. The exchange also said the rule is consistent with comparable commodity-based exchange-traded product frameworks and would not create an unnecessary burden on competition.
Derivatives would be counted by gross notional value
One of the most consequential parts of the filing is how derivatives exposure would be measured. Listed and over-the-counter derivatives would be counted based on their aggregate gross notional value. That means a trust’s options or futures positions could materially influence whether it remains above the 85% eligibility threshold, even when the underlying crypto holdings themselves appear to fit within the rule.
This approach matters because gross notional treatment can make derivatives exposure look much larger in compliance calculations than a mark-to-market or net-risk approach would. A product sponsor could therefore hold a substantial qualifying crypto position and still fail the listing test if derivative overlays become too large relative to the rest of the portfolio.
The filing also indicates that sponsors would have to monitor the threshold on a daily basis and promptly notify NYSE Arca if a trust falls out of compliance. That monitoring requirement adds an operational layer to the proposal, raising the bar for issuers that intend to use more complex portfolio strategies.
Why bitcoin and XRP-linked structures could feel the impact
The examples in the filing show why the proposal could be especially relevant for future crypto trust products. NYSE Arca notes that a trust with 95% of its value invested in qualifying assets such as bitcoin, ether, solana, and XRP would satisfy the proposed standard. According to the filing, those assets qualify because they underlie futures contracts that have traded on designated markets for at least six months and are associated with exchange-traded products that provide significant exposure.
That example suggests the proposal does not aim to shut the door on mainstream crypto exposure. Instead, it appears designed to keep most of a product’s value anchored to assets that already fit into a surveillance-supported regulatory framework. For issuers building straightforward crypto trusts with limited use of non-standard instruments, the rule could offer a more predictable route to listing.
At the same time, the filing illustrates how that predictability can break down when non-qualifying derivatives are added to the mix. In one example, a trust holding bitcoin alongside over-the-counter call options on a bitcoin ETF would fail the test because only about 71% of its exposure would meet the required criteria. The case highlights a key regulatory message: non-qualifying derivative positions can dilute otherwise eligible crypto exposure enough to disqualify a product from the generic listing framework.
A tighter route for innovation, not a complete closure
The proposal is not limited to crypto. It also applies to commodity-focused products more broadly. A gold trust using gold and gold futures, for example, could still qualify if all holdings satisfy the current rule. That reinforces the idea that NYSE Arca is not trying to eliminate innovation, but to push product design toward structures that are easier to supervise under existing market oversight mechanisms.
At the same time, the exchange wants to draw a line around what counts as a commodity for purposes of the generic listing standards. The filing says non-fungible assets and collectibles should be excluded from the rule’s commodity definition because those asset types were not contemplated when the standards were originally adopted. That does not necessarily mean such products could never list, but it does mean they would not qualify through the generic route and would instead require separate approval.
For market participants, this distinction matters. Generic listing standards typically offer a more streamlined path than individualized approvals. If adopted, the new framework could make it easier to assess which crypto and commodity products are realistic candidates for listing, while making clear that products with more exotic or less surveilled exposures will face a higher procedural hurdle.
What the SEC is weighing now
The SEC has not approved the proposal. At this stage, it is asking the public to comment on whether the NYSE Arca rule change is consistent with the Securities Exchange Act. During the review period, the agency can approve the proposal, reject it, or institute additional proceedings to examine it in greater depth.
The broader significance lies in the direction of travel. Even without a final decision yet, the filing suggests a regulatory preference for clearer, more measurable portfolio standards in exchange-listed crypto and commodity trusts. Products may gain some flexibility through the allowance for up to 15% in non-qualifying assets, but that flexibility is paired with stricter exposure limits and closer compliance oversight.
For issuers, the proposal could influence how future crypto ETFs and trust structures are engineered. For investors, it may shape the kinds of products that ultimately reach public markets. And for the broader digital asset sector, the message is straightforward: access to listing pathways may expand, but only where the majority of a product’s exposure remains tied to assets and markets that regulators believe can be effectively monitored.
In that sense, the proposed 85% rule is more than a technical listing amendment. It is a sign that future approval pathways for crypto-linked products may increasingly depend not just on the identity of the underlying asset, but on the overall construction of the portfolio, the use of derivatives, and the exchange’s ability to surveil the relevant market exposures.