SEC Notice Opens Comments on NYSE Arca’s Proposed 85% Asset Rule, Strengthening Registration Requirements for Crypto and Commodity Trusts.
Key points to remember:
- The SEC notice seeks comment on NYSE Arca’s proposal requiring 85% of assets to meet eligibility criteria.
- The NYSE Arca rule would derive counts into gross national value, which would impact crypto-trust qualification calculations.
- Cryptocurrency and commodity trusts can use up to 15% of non-qualifying assets and still remain compliant.
SEC Notice Opens Comment Period on Proposed 85% Asset Rule
A Securities and Exchange Commission (SEC) notice issued on April 27, 2026 outlines a proposed rule change from NYSE Arca that could reshape how crypto and commodities investment products qualify for listing on exchanges. The SEC is seeking public comment on the proposal’s compliance with the Securities Exchange Act. The filing introduces an 85% asset threshold that would limit exposure to assets outside existing eligibility standards. The proposal highlights a move toward stricter portfolio requirements for future trust registrations.
NYSE Arca seeks to revise Rule 8.201-E, the generic listing framework for commodity-based trust stocks. Under the proposed change, at least 85% of a trust’s net asset value would have to be held in assets already permitted by the rule. These assets may include eligible commodities, commodity-based assets, securities, cash and cash equivalents. The remaining 15% could include other assets that do not independently meet the rule’s eligibility criteria, provided the trust otherwise remains compliant. The file states:
“The Exchange is proposing to amend Rule 8.201-E (Generic) to modify the generic listing standards for commodity-based trust stocks.”
The proposal would also count listed and over-the-counter derivatives based on overall gross national value. This means that large positions in options or futures could impact a product’s eligibility. Sponsors should monitor the 85% threshold daily and promptly notify NYSE Arca if a trust is no longer in compliance. The filing presents the change as a way to allow more listings while keeping most of the exposure tied to assets that support market surveillance.
Eligibility rules highlight limits on derivatives and ineligible assets
The examples in the filing show why the threshold could be important for future cryptocurrency and commodities funds. A trust with 95% of its value in eligible assets such as Bitcoin, Ether, Solana and XRP would meet the proposed standard. These assets are eligible because they underlie futures contracts traded on designated exchanges for at least six months and are associated with exchange-traded products providing significant exposure, meeting the rule’s eligibility criteria.
A gold-focused trust using gold and gold futures would also qualify if all holdings meet the current rule. But a trust holding bitcoin and over-the-counter call options on a bitcoin ETF would fail if only about 71% of its exposure met the required criteria. This example shows how ineligible derivatives can trump an otherwise eligible Bitcoin position. NYSE Arca also wants to exclude non-fungible assets and collectibles from the rule’s definition of commodities. The filing indicates that these assets were not considered when adopting the generic standards.
Beyond crypto funds, the proposal points to a tighter path for product approval. NYSE Arca could still seek separate approval for trusts involving non-fungible assets or collectibles, but those products would not be eligible through the generic listing route. The exchange says the 85% threshold is consistent with similar commodity-based exchange-traded products and would support competition concerns between players and venues. The filing also says the framework is designed to improve the exchange’s ability to monitor transactions, deter manipulation and protect investors while allowing additional products to come to market. Filing notes:
“The Exchange does not believe that the proposed rule change will impose a burden on competition that is not necessary or appropriate to achieve the objectives of the Act.”
The SEC may approve, reject, or initiate proceedings on the proposal during its review period. Interested parties may submit comments to the SEC on the rule change, including arguments on whether it meets the requirements of the law. The key takeaway is that future cryptocurrency and commodity trust listings could gain flexibility, but only within stricter exposure limits.
