SEC Weighs NYSE Arca Proposal to Revamp Crypto Trust Listing Rules

The US Securities and Exchange Commission (SEC) is seeking public input on a proposal from NYSE Arca to adjust listing rules for crypto commodity trusts. The proposed changes aim to strike a balance between flexibility and tighter oversight, particularly for derivatives and non-qualifying assets.

Under the new framework, at least 85% of a product's net asset value must consist of assets already permitted under existing rules. This would allow trusts holding major cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP to include smaller allocations to emerging tokens.

The proposal also introduces stricter measurement rules for derivatives exposure, using total notional value rather than market value alone. This may prevent excessive reliance on complex instruments that fall outside core eligibility criteria.