SEC Requests Public Comment on NYSE Arca's 85% Eligible-Asset Rule for Crypto ETF Listings

Gate News message, April 28 — The U.S. Securities and Exchange Commission is soliciting public comment on a proposed NYSE Arca rule amendment that would establish a new framework for cryptocurrency commodity exchange-traded products. Under the proposal, at least 85% of a trust’s net asset value must consist of assets that already qualify under existing listing rules, while the remaining 15% could be held in other assets that do not independently meet those standards, provided the trust satisfies all other regulatory requirements.

The proposal includes specific examples to illustrate the new thresholds. A trust holding Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP alongside a small allocation of non-qualifying digital assets would pass if 95% of net asset value met the standards. Conversely, a trust holding Bitcoin plus over-the-counter call options on a Bitcoin ETF would fail if only approximately 71% of the exposure qualified. The filing also specifies that listed and over-the-counter derivatives will be valued using aggregate gross notional value rather than market value alone.

The proposal narrowed the definition of “commodity” for these generic listings, explicitly excluding non-fungible assets and collectibles, though NYSE Arca noted it could still pursue separate approval for products holding such assets in the future.

The filing reflects a broader shift in the SEC’s regulatory approach under Chairman Paul Atkins, who took office in April 2025. The agency has increasingly focused on standardized frameworks and product clarity rather than the enforcement-first stance that characterized the previous administration. Recent SEC initiatives include a crypto safe harbor proposal, coordinated guidance with the CFTC on digital asset classification, acknowledgment of past enforcement shortcomings, and regulatory pathways for certain crypto interfaces to bypass broker registration requirements.