SEC Seeks Public Comment on NYSE Arca Crypto ETP Rule Change

The U.S. Securities and Exchange Commission (SEC) has opened a public consultation on a proposed rule change by NYSE Arca that could reshape how crypto commodity exchange-traded products (ETPs) are structured and listed in the United States.

In a notice published Monday, the SEC said NYSE Arca is seeking to amend its generic listing standards for Commodity-Based Trust Shares. The proposal would require at least 85% of a trust’s net asset value (NAV) to consist of assets already eligible under existing listing rules, while allowing up to 15% to be allocated to non-qualifying assets.

According to the filing, the flexibility is intended to enable broader product design while maintaining core exposure to assets that meet existing surveillance and eligibility standards.

NYSE Arca also proposed that listed and over-the-counter derivatives be measured using aggregate gross notional value rather than market value, a change that could affect how exposure is calculated in multi-asset crypto products.

The filing included illustrative scenarios. A trust holding bitcoin, ether, Solana, and XRP alongside a small allocation of non-qualifying digital assets would be permitted if 95% of its NAV meets eligibility standards. However, a structure combining bitcoin with OTC call options on a bitcoin ETF would fail if only 71% of exposure qualifies under the rule.

The proposal also narrows the definition of “commodity” for generic listings, explicitly excluding non-fungible assets and collectibles, while leaving room for future bespoke approvals.

Broader Shift in Crypto Listing Frameworks

The consultation reflects a broader shift at the SEC toward standardized listing frameworks for digital asset products, moving away from case-by-case approvals that previously defined the regulatory approach.

Since Paul Atkins assumed the role of SEC Chair in April 2025, the agency has increasingly focused on structured rulemaking. Recent initiatives include a crypto safe harbor proposal, coordination with the Commodity Futures Trading Commission (CFTC) on digital asset guidance, and revisions to prior enforcement-driven interpretations of crypto market activity.

Implications for Crypto ETP Issuers

If adopted, the proposed framework could expand the design flexibility for crypto ETP issuers while tightening the structural requirements for eligibility-weighted exposure. This may influence how asset managers construct multi-token products and derivatives-linked funds in regulated U.S. markets.