SEC Approves New Rules for NYSE Arca Commodity Trust Shares, Allowing 15% Buffer and Active Management

The SEC has expedited the approval of NYSE Arca's amendment to the general listing standards for Commodity-Based Trust Shares (SR-NYSEArca-2026-42, Amendment No. 1). This amendment applies to trust products holding digital commodities such as Bitcoin, Ethereum, Solana, and XRP, as well as traditional commodities like gold. The amendment introduces three main changes: first, it allows up to 15% of the net asset value of the trust's holdings to consist of digital commodities or securities that do not fully meet the current qualification standards; second, it adds a definition for "digital commodities," which refers to those whose value derives from the programmatic operation of functional cryptographic systems and supply-demand relationships, rather than profit expectations from the efforts of others; third, it removes the current requirement that such products must be passively managed, permitting active management strategies. The amendment still requires that at least 85% of the net asset value of the trust's holdings must consist of commodities, commodity-like assets, and securities that meet the current qualification standards. For actively managed products, NYSE Arca has also proposed new firewall requirements to prevent the misuse of material non-public information and corresponding trading halt mechanisms.