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Nasdaq ISE just asked the SEC for permission to stop asking the SEC for permission. The exchange submitted a rule change on July 28 that would let it list options on crypto-backed ETFs using standardized criteria, bypassing the current process that requires a separate regulatory approval for each new product.
The filing, tagged SR-ISE-2026-42, would create a framework for options on “commodity-based trust shares that incorporate digital commodities.” If a crypto ETF meets specific benchmarks, its options can go live without a bespoke SEC blessing.
What the thresholds actually look like
Qualifying trusts would need to maintain at least $700 million in average daily global market value for each digital commodity they hold.
There’s also a surveillance requirement. Derivatives tied to the trust’s holdings must trade on a market surveilled by an Intermarket Surveillance Group (ISG) member, covering at least 85% of the trust’s net asset value. The remaining 15% gets a partial exemption, meaning assets without comprehensive surveillance agreements aren’t an automatic disqualifier as long as they stay a minority of the portfolio.
That 85/15 split means a multi-asset crypto ETF could hold a dominant position in Bitcoin and Ethereum, which already trade on well-surveilled venues, while allocating a smaller slice to assets like Solana that may have thinner surveillance infrastructure. The filing specifically references the possibility of options on products containing Bitcoin, Ethereum, and Solana, among others.
The backstory: position limits and a stalled bill
Back in January 2026, Nasdaq removed the 25,000-contract position limits on Bitcoin and Ethereum ETF options, a move that opened the floodgates for larger institutional positions.
The timing is also shaped by what Congress hasn’t done. The Digital Asset Market Clarity Act, known as the CLARITY Act, was supposed to draw jurisdictional lines between the SEC and CFTC on digital assets. Updated legislative texts have circulated, but the Senate hasn’t reached a resolution. As of late July 2026, the bill remains stuck in negotiations.
What this means for the options market
If the SEC approves the rule change, the most immediate effect would be speed. Right now, every new crypto ETF option requires its own filing, review period, and approval. That process can stretch for months, creating a bottleneck that doesn’t exist for gold, silver, or oil ETF options.
The $700 million threshold also creates an interesting dynamic for asset issuers. ETF sponsors will have a concrete target to hit if they want their products to qualify for streamlined options listings.
There’s a risk dimension worth noting. The 15% flexibility on surveillance coverage means a portion of some trusts’ holdings could sit in less-monitored markets. The SEC’s comment period on the filing will likely draw scrutiny on whether that 15% carve-out is appropriately sized.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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