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Crypto World

NYSE lifts crypto ETF options limits on 11 funds

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Source: SEC

Two NYSE-linked exchanges have put new crypto ETF options rules into effect after filings cleared the SEC process. 

Summary

  • NYSE Arca and NYSE American removed position limits on options tied to 11 crypto ETFs.
  • The SEC waived the usual waiting period, allowing the new crypto options rules to take effect immediately.
  • The rule change gives institutions more flexibility and allows crypto ETF options to trade as FLEX contracts.

NYSE Arca and NYSE American removed the 25,000-contract position and exercise limit for options tied to 11 spot Bitcoin and Ether exchange-traded funds, giving those products broader trading terms.

NYSE Arca filed its proposed rule change on March 10, 2026, to revise rules for options on certain crypto-linked ETFs. The filing covered products that had been trading under a 25,000-contract cap since their launch phases.

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NYSE American filed a similar proposal on the same date. Its filing also removed the fixed 25,000-contract limit and updated the exchange’s rules so those options can follow the broader position-limit structure already used for other eligible products.

SEC waiver made the changes effective at once

Both filings became effective under Rule 19b-4(f)(6). In each case, the SEC said the standard 30-day operative delay could be waived because the changes aligned crypto ETF options rules with those used by other exchanges and did not create new regulatory issues.

The Federal Register notices state that the Commission designated both proposals to be operative upon filing. In the notices, the SEC wrote that waiving the delay was consistent with investor protection and the public interest, making the new rules active without waiting another month.

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Source: SEC
Source: SEC

Furthermore, the rule changes affect 11 crypto ETF options. The list includes BlackRock’s iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, Grayscale Ethereum Trust ETF, Grayscale Ethereum Mini Trust ETF, Bitwise Ethereum ETF, iShares Ethereum Trust ETF, and Fidelity Ethereum Fund.

Earlier filings had already removed some limits for a smaller group of Bitcoin ETF options, including GBTC, the Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, and IBIT. The new March 2026 changes extend similar treatment across the full set of listed crypto ETF options covered by these exchange rules.

FLEX options and larger positions now get more room

The updates also allow these crypto ETF options to trade as FLEX options under the revised rules. FLEX contracts let market participants customize terms such as strike prices, expiration dates, and exercise styles instead of using only standard listed terms.

NYSE American’s filing says the exchange wants these crypto asset options treated like other options for position, exercise, and FLEX trading purposes. A separate Nasdaq ISE proposal still seeks to raise the position limit for IBIT options to 1 million contracts, and that proposal remains under SEC review.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class