NYSE Arca’s Proposal to the SEC
On April 27, NYSE Arca submitted a key proposal to the Securities and Exchange Commission (SEC) that could have significant implications for the classification of crypto assets. This amendment to Rule 8.201-E specifically designates XRP, alongside Bitcoin, Ethereum, and Solana, as valid assets for commodity-based trust shares. This proposal, which must adhere to legal standards, outlines a requirement for trusts to maintain at least 85% of their net asset value in acceptable digital assets.
Public Commentary and Compliance
The proposal opened for public commentary allows input from stakeholders and industry participants who will influence the SEC’s ultimate decision. While the filing does not classify XRP as a commodity in legal terms, it does suggest that XRP qualifies due to its involvement in futures contracts traded on regulated markets for over six months and its existing role in exchange-traded products that provide meaningful market exposure.
Yahoo Finance reported that the 85% criteria mean a trust can only invest up to 15% in assets that do not meet NYSE Arca’s eligibility standards, setting a clear benchmark. For instance, a fund comprising 95% of Bitcoin, Ethereum, Solana, and XRP would comply with this requirement, whereas a trust predominantly holding Bitcoin combined with non-qualifying call options could fall short under this guideline. Furthermore, sponsors are tasked with ongoing monitoring to ensure they remain compliant with this threshold.
Exclusions and Future Implications
Importantly, the document explicitly rules out non-fungible tokens (NFTs) and collectibles from this commodity definition, effectively shutting them out of this particular framework for listing on the exchange. Following the public comment phase, the SEC will review the proposal in accordance with the standard procedures set out by the Securities Exchange Act.
In a related development, XRP was previously classified as one of the 16 digital commodities in a joint guidance from the SEC and the Commodity Futures Trading Commission (CFTC) issued on March 17, 2026, which lends further credibility to NYSE Arca’s recent filing and reinforces XRP’s position alongside Bitcoin and Ethereum in terms of regulatory alignment.
Institutional Framework and Future Developments
The practical implications of this proposal are profound. By formally including XRP in its generic listing standards for commodity trust products, NYSE Arca is paving the way for quicker approvals of future XRP-related trust offerings, following the streamlined paths established for Bitcoin and Ethereum.
Additionally, T. Rowe Price recently updated its Active Crypto ETF proposal to include XRP among its investment options and aims for an SEC-approved launch soon. Bloomberg’s ETF expert Eric Balchunas indicated that this filing has gone through multiple amendments and is nearing launch.
This amalgamation of the SEC-CFTC commodity classification, NYSE Arca’s proposed amendment, the impending launch of XRP futures by Coinbase, and T. Rowe Price’s ETF intentions suggests a robust institutional framework recognizing XRP as a commodity-grade asset in a remarkably short time frame. Nevertheless, it is important to clarify that none of these steps replace or replicate the anticipated regulatory clarity that would follow the passage of the CLARITY Act, which would cement the current treatment into law.
As the SEC continues its review process, the finalized impact of NYSE Arca’s proposal on XRP’s classification may hinge on legislative developments in May regarding the CLARITY Act, which could pave the way for binding federal legislation on crypto asset classifications.
