SEC Reviews '85% Proposal' for Bitcoin and XRP ETFs

The U.S. Securities and Exchange Commission is reviewing what has been dubbed the "85% proposal," a rule change filing from NYSE Arca that could reshape how Bitcoin and XRP exchange-traded funds are listed on national securities exchanges.

What the SEC's "85% Proposal" Is and Why It Is Under Review

The Filing and Its Core Mechanism

The proposal originates from NYSE Arca, one of the primary U.S. exchanges where crypto-linked ETFs trade. The exchange submitted a rule change filing to the SEC that includes a threshold requirement commonly referred to as the "85% proposal." The term refers to a condition tied to the percentage of an ETF's underlying assets that must meet specific criteria for listing eligibility.

The SEC published the filing for public review, a standard procedural step that signals the agency is formally evaluating whether the proposed rule change is consistent with the Securities Exchange Act. A subsequent filing in 2026 indicates the review process has continued into this year.

Where the Review Stands

SEC rule change reviews follow a defined timeline. After publication, the Commission opens a comment period, during which market participants and the public can submit feedback. The SEC then either approves, disapproves, or institutes proceedings for further review.

At this stage, the proposal remains under active consideration. No final determination has been publicly announced.

How the Proposal Could Affect Bitcoin and XRP ETF Listings

The 85% threshold, if adopted, would set a concrete standard that ETF issuers must satisfy before their products can list on NYSE Arca. This matters because listing standards directly determine which ETF products can reach investors through regulated exchanges.

Bitcoin ETF Implications

Spot Bitcoin ETFs already trade on U.S. exchanges following approvals in recent years. A change to the listing framework could affect how existing products maintain compliance or how new Bitcoin ETF variants, such as those with options overlays or leveraged structures, qualify for listing. The proposal would apply a uniform benchmark rather than case-by-case evaluation, which is how earlier SEC crypto policy debates have played out at the legislative level.

XRP ETF Implications

For XRP, the stakes differ. Multiple asset managers have filed for XRP-based ETF products, but none have yet received full approval for spot exchange listing. A standardized 85% requirement could either streamline the path for XRP ETFs by providing clear criteria, or create an additional hurdle if XRP's market structure does not satisfy the threshold.

The distinction matters because XRP's trading volume and market depth profile differ from Bitcoin's. Any listing standard tied to asset liquidity or price transparency could affect XRP products differently than their Bitcoin counterparts, a dynamic that broader DeFi and crypto market participants are watching closely.

Why This SEC Review Matters for Crypto Markets and ETF Issuers

The immediate stakeholders include ETF issuers who have pending or planned filings, exchanges like NYSE Arca that need regulatory clarity on listing rules, and institutional investors evaluating crypto ETF exposure. A clear, codified threshold removes ambiguity from the approval process.

The next milestone to watch is the close of the SEC's comment period and any subsequent order instituting proceedings. If the SEC moves to approve the rule change, it would establish a precedent that applies not only to Bitcoin and XRP products but potentially to ETFs tied to other digital assets. Readers following developments around growing global crypto adoption should note that U.S. listing standards often influence regulatory approaches in other jurisdictions.

ETF issuers with active applications will likely adjust their filings to address the 85% framework if adopted, as reported by Bitcoin.com News. Until the SEC issues a formal decision, the proposal remains one of several regulatory variables shaping the crypto ETF landscape in 2026.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.