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NYSE Arca has introduced a new rule proposal that explicitly includes $XRP among assets that could qualify under updated standards for Commodity-Based Trusts.
The exchange submitted the proposal yesterday to amend Rule 8.201-E, which governs the generic listing standards for such products.
Key Points
- NYSE Arca identifies $XRP, Bitcoin, and Ethereum as examples of assets that could qualify for commodity-based trust products.
- The proposal states that portfolios with up to 85% in approved assets would meet the new eligibility requirements.
- The SEC has opened the filing for public comment before issuing a final decision.
- Although the proposal references $XRP, it does not formally classify it as a commodity.
$XRP Named Among Qualified Assets for Commodity Trusts
The proposal is now under review by the U.S. SEC, which is currently seeking public comments before a final decision is made. Notably, the proposal requires at least 85% of a crypto trust’s net asset value (NAV) to consist of approved assets that already meet existing surveillance and listing requirements.
Notably, the filing highlights $XRP alongside Bitcoin, Solana, and Ethereum as examples of qualifying assets. Moreover, it clarifies portfolio thresholds. A trust holding $XRP and other qualifying assets could still meet the standard if up to 15% of its holdings fall outside the approved category.
According to the exchange, the rule aims to provide greater flexibility for crypto product issuers while maintaining investor protections tied to surveillance-sharing agreements and regulated market oversight.
$XRP Not Explicitly Named a Commodity in NYSE Arca Filing
Although the filing cites $XRP as an example, it does not formally classify the asset as a commodity. Even so, $XRP’s inclusion is notable given its long-standing role in U.S. regulatory debates.
In 2023, a New York court deemed $XRP a non-security, yet legal experts continue to debate whether it qualifies as a commodity. This continued even as the SEC and the CFTC issued a joint taxonomy that classified the token as a digital commodity, alongside Bitcoin and Ethereum.
Nevertheless, despite these developments, industry stakeholders argue that only clear, congress-backed legislation like the Clarity Act can fully resolve regulatory uncertainty and prevent future policy reversals.