NYSE Arca has filed a rule change with the U.S. Securities and Exchange Commission that explicitly includes XRP among the assets eligible for Commodity-Based Trusts. The proposal, submitted yesterday, seeks to amend Rule 8.201-E, which sets generic listing standards for such products.
The move marks a potential shift in how digital assets are categorized and treated in regulated financial products. Under the proposed rule, at least 85% of a crypto trust’s net asset value must consist of assets that already meet existing surveillance and listing requirements. XRP is listed alongside Bitcoin, Solana, and Ethereum as examples of qualifying assets. Up to 15% of holdings could fall outside the approved category, offering some flexibility for issuers.
A Step Toward Greater Flexibility
According to NYSE Arca, the rule aims to give crypto product issuers more room to operate while still maintaining investor protections. Those protections rely on surveillance-sharing agreements and oversight from regulated markets. The proposal explicitly names XRP as a qualifying asset, but it does not formally label the token as a commodity. This distinction is subtle but important, given the ongoing legal debates around XRP’s classification.
In 2023, a New York court ruled that XRP is not a security when sold on exchanges. However, legal experts remain divided on whether it qualifies as a commodity. The SEC and the Commodity Futures Trading Commission have jointly classified XRP as a digital commodity, alongside Bitcoin and Ether. Still, that classification has not settled all questions.
Regulatory Uncertainty Persists
Industry observers note that even with this filing, the regulatory landscape for XRP is far from clear. Some argue that only legislation, like the proposed Clarity Act, can fully resolve the uncertainty. Without clear congressional backing, they say, policy reversals remain possible. The NYSE Arca proposal is now under SEC review, and the agency is seeking public comments before making a final decision. The outcome could have broader implications for how other digital assets are treated in similar products.
For now, the filing is a signal that at least one major exchange sees XRP as a viable asset for regulated investment vehicles. Whether regulators agree remains to be seen. The comment period will likely draw input from both supporters and critics of the token, adding another layer to an already complicated debate.
