Self-Regulatory Organizations; Miami International Securities Exchange, LLC, MIAX PEARL, LLC, MIAX Sapphire, LLC; Order Approving Proposed Rule Changes Regarding the Adoption of Listing Criteria for Options on Commodity-Based Trusts That Hold Multiple Crypto Assets

[Federal Register Volume 91, Number 106 (Wednesday, June 3, 2026)]

[Notices]

[Pages 33272-33274]

From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ]

[FR Doc No: 2026-11031]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-105578; File Nos. SR-MIAX-2026-13, SR-PEARL-2026-15,

SR-SAPPHIRE-2026-13]

Self-Regulatory Organizations; Miami International Securities

Exchange, LLC, MIAX PEARL, LLC, MIAX Sapphire, LLC; Order Approving

Proposed Rule Changes Regarding the Adoption of Listing Criteria for

Options on Commodity-Based Trusts That Hold Multiple Crypto Assets

May 29, 2026.

I. Introduction

On March 30, 2026, Miami International Securities Exchange, LLC,

MIAX PEARL, LLC, and MIAX Sapphire, LLC (each an ``Exchange,'' and

collectively, the ``Exchanges'') filed with the Securities and Exchange

Commission (``Commission''), pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934 (``Act'' or ``Exchange Act''),\1\ and

Rule 19b-4 thereunder,\2\ proposed rule changes to adopt listing

criteria for options on Commodity-Based Trusts that hold multiple

crypto assets. The proposed rule changes were published for comment in

the Federal Register on April 16, 2026.\3\ The Commission received no

comments regarding the proposed rule changes. This order approves the

proposed rule changes.

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\1\ 15 U.S.C. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

\3\ See Exchange Act Release No. 105220 (Apr. 13, 2026), 91 FR

20530 (``MIAX Notice''); Exchange Act Release No. 105221 (Apr. 13,

2026), 91 FR 20545 (``Pearl Notice''); Exchange Act Release No.

105222 (Apr. 13, 2026), 91 FR 20536 (``Sapphire Notice'').

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II. Description of the Proposed Rule Changes

Currently, Rule 402 of each Exchange allows the Exchanges to list

options on shares that represent interests in a Commodity-Based Trust

that meets the generic criteria of Exchange Rule 402, except that the

Commodity-Based Trust holds a single crypto asset, as defined in

Exchange Rule 402(i)(6)(iii), and provided that (A) the global supply

of the crypto asset held by the Commodity-Based Trust has an average

daily market value of at least $700 million over the last 12 months;

and (B) the crypto asset held by the Commodity-Based Trust underlies a

derivatives contract that trades on a market with which the Exchange

has a comprehensive surveillance sharing agreement, whether directly or

through common membership in the Intermarket Surveillance Group

(``ISG'').\4\ Each Exchange proposes to amend its Rule 402(i)(6)(iii)

to allow the Exchange to list and trade options on a Commodity-Based

Trust that holds multiple crypto assets. The proposals would allow the

Exchanges to list and trade these options without additional approval

from the Commission.\5\ Under the proposal, each crypto asset that the

Commodity-Based Trust holds must meet the criteria in Exchange Rule

402(i)(6).\6\ Accordingly, each of the Commodity-Based Trust's crypto

assets must: (A) have an average daily market value of at least $700

million over the last 12 months; and (B) underlie a derivatives

contract that trades on a market with which the Exchange has a

comprehensive surveillance sharing agreement, whether directly or

through common membership in ISG.\7\ The proposed options on qualifying

Commodity-Based Trusts also must satisfy the Exchanges' initial and

continued listing standards currently in the Exchanges' Rules

applicable to all options on exchange-traded funds (``ETFs'').\8\ Rule

402(i) requires the shares of an ETF underlying listed options to trade

on a national securities exchange and to be an ``NMS stock,'' as

defined in Rule 600 of Regulation NMS under the Exchange Act. In

addition, the shares of an ETF must meet the listing

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criteria in Exchange Rule 402(a) and (b) \9\ or Exchange Rule

402(i)(6)(i)(B).\10\

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\4\ See Exchange Rule 402(i)(6)(iii). Exchange Rule

402(i)(6)(iii) defines the term ``crypto asset'' to mean ``an asset

that is generated, issued and/or transferred using a blockchain or

similar distributive ledger technology network, including but not

limited to, assets known as `tokens,' `digital assets,' `virtual

currencies,' and `coins' and that relies on cryptographic

protocols.'' See id.

\5\ See MIAX Notice, at 20535; Pearl Notice, at 20548; Sapphire

Notice, at 20539-40.

\6\ See proposed Exchange Rule 402(i)(6)(iii).

\7\ See proposed Exchange Rule 402(i)(6)(iii). The Exchanges

state that the market value for each crypto asset held by a

Commodity-Based Trust will be calculated by taking the total global

supply of the particular crypto asset multiplied by the token price

of that asset. The Exchanges state that the total supply of a crypto

asset includes all crypto assets currently issued and does not

include unissued crypto assets. See MIAX Notice, at 20532; Pearl

Notice, at 20546; Sapphire Notice, at 20537-38.

\8\ See MIAX Notice, at 20534; Pearl Notice, at 20549; Sapphire

Notice, at 20540. In its proposal, the Exchanges refer to Commodity-

Based Trust Shares as ETFs. See MIAX Notice, at 20531; Pearl Notice,

at 20545; Sapphire Notice, at 20536. The Exchanges' Rules use the

term ``exchange-traded fund'' to refer to several types of

investment products, including Commodity-Based Trusts. See Exchange

Rule 402(i).

\9\ See MIAX Notice, at 20532; Pearl Notice, at 20546; Sapphire

Notice, at 20538. Exchange Rule 402(a) states that underlying

securities with respect to which put or call options contracts are

approved for listing and trading on the Exchange must meet the

following criteria: (1) the security must be registered and be an

``NMS stock'' as defined in Rule 600 of Regulation NMS under the

Exchange Act; and (2) the security shall be characterized by a

substantial number of outstanding shares that are widely held and

actively traded. Exchange Rule 402(b) states, among other things,

that, absent exceptional circumstances, an underlying security will

not be selected unless: (1) there are a minimum of seven (7) million

shares of the underlying security which are owned by persons other

than those required to report their stock holdings under Section

16(a) of the Exchange Act; (2) there are a minimum of 2,000 holders

of the underlying security; (3) the issuer is in compliance with any

applicable requirements of the Exchange Act; (4) trading volume (in

all markets in which the underlying security is traded) has been at

least 2,400,000 shares in the preceding twelve (12) months; and (5)

either: (i) If the underlying security is a ``covered security'' as

defined under Section 18(b)(1)(A) of the Securities Act of 1933: (A)

the market price per share of the underlying security has been at

least $3.00 for the previous three (3) consecutive business days

preceding the date on which the Exchange submits a certificate to

the Clearing Corporation for listing and trading, as measured by the

closing price reported in the primary market in which the underlying

security is traded; however, (B) the requirements set forth in

(5)(i)(A) will be waived during the three days following its initial

public offering day for an underlying security having a market

capitalization of at least $3 billion based upon the offering price

of its initial public offering, and may be listed and traded

starting on or after the second business day following the initial

public offering day; or (ii) if the underlying security is not a

``covered security,'' the market price per share of the underlying

security has been at least $7.50 for the majority of business days

during the three (3) calendar months preceding the date of

selection, as measured by the lowest closing price reported in any

market in which the underlying security traded on each of the

subject days.

\10\ Exchange Rule 402(i)(6)(i)(B) states that the Exchange-

Traded Fund Shares are available for creation or redemption each

business day from or through the issuing trust, investment company,

commodity pool or other entity in cash or in kind at a price related

to net asset value, and the issuer is obligated to issue Exchange-

Traded Fund Shares in a specified aggregate number even if some or

all of the investment assets and/or cash required to be deposited

have not been received by the issuer, subject to the condition that

the person obligated to deposit the investment assets has undertaken

to deliver them as soon as possible and such undertaking is secured

by the delivery and maintenance of collateral consisting of cash or

cash equivalents satisfactory to the issuer of the Exchange-Traded

Fund Shares, all as described in the Exchange-Traded Fund Shares'

prospectus.

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Proposed Exchange Rule 403(g)(3) will allow the Exchanges to

suspend opening transactions in options on Commodity-Based Trust shares

if any crypto asset held by the Commodity-Based Trust (A) no longer has

an average daily market value of at least $700 million over the last 12

months, as determined by the Exchange on a monthly basis; or (B) no

longer underlies a derivatives contract that trades on a market with

which the Exchange has a comprehensive surveillance sharing agreement,

whether directly or through common membership in ISG. The Exchanges

state that requiring the average daily market value criterion to be met

on a monthly basis is reasonable given that the Exchanges believe that

it is unlikely that a crypto asset with an average daily market value

of at least $700 million over the previous twelve months would fail to

meet that standard as a result of trading over a relatively short

period of time.\11\

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\11\ See MIAX Notice, at 20532; Pearl Notice, at 20547; Sapphire

Notice, at 20540. For example, the Exchanges state that a crypto

asset with market capitalization of $900 million for 15 days in a

20-day trading month could lose up to 88% of its value and continue

to meet the criteria. See MIAX Notice, at 20532; Pearl Notice, at

20547; Sapphire Notice, at 20540.

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Options on Commodity-Based Trust shares also will be subject to the

Exchange Rule 403(g).\12\ Under Exchange Rule 403(g), shares of an ETF

approved for options trading pursuant to Exchange Rule 402(i) would not

meet the requirements for continued approval, and the Exchanges shall

not open for trading any additional series of option contracts of the

class covering such ETF if the shares are delisted from trading as

provided in Exchange Rule 603(b)(5) or the shares are halted or

suspended from trading on their primary market.\13\ Further, Exchange

Rule 403(g)(4) (renumbered as Exchange Rule 403(g)(5)) would allow the

Exchanges to consider suspending opening transactions in options on

Commodity-Based Trust shares if such other event occurs or condition

exists that in the opinion of the Exchange further dealing in the

options on the Exchange is inadvisable.\14\

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\12\ See MIAX Notice, at 20532; Pearl Notice, at 20546; Sapphire

Notice, at 20538.

\13\ See Exchange Rule 403(g). See also MIAX Notice, at 20532;

Pearl Notice, at 20546; Sapphire Notice, at 20538.

\14\ See MIAX Notice, at 20532; Pearl Notice, at 20546; Sapphire

Notice, at 20538.

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The Exchanges state that the proposed options on Commodity-Based

Trust shares would trade in the same manner as other ETF options on the

Exchanges and will be subject to Exchange rules that currently apply to

the listing and trading of ETF options, including Exchange rules

governing, for example, listing criteria, expirations, exercise prices,

minimum increments, position and exercise limits, margin requirements,

customer accounts and trading halt procedures.\15\ The Exchanges state

that position and exercise limits for options on Commodity-Based Trust

shares will be determined pursuant to Exchange Rules 307 and 309,

respectively.\16\

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\15\ See MIAX Notice, at 20533; Pearl Notice, at 20547; Sapphire

Notice, at 20539.

\16\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire

Notice, at 20539.

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The Exchanges represent that the same surveillance procedures

applicable to all other options on other ETFs currently listed and

traded on the Exchange will apply to the trading of options on

Commodity-Based Trust shares that are approved subject to Exchange Rule

402(i)(6).\17\ The Exchanges state that their existing surveillance and

reporting safeguards are designed to deter and detect possible

manipulative behavior which might potentially arise from listing and

trading options of these options on Commodity-Based Trusts that are

approved subject to Exchange Rule 402(i)(6).\18\ The Exchanges state

that they may obtain information from designated contract markets that

are members of the ISG related to a financial instrument that is based,

in whole or in part, upon an interest in or performance of a crypto

asset, as applicable.\19\ In addition, the Exchanges state that they

currently lists options that would qualify for listing under proposed

Exchange Rule 402(i)(6), and that it has not identified any issues with

the listing and trading of these options.\20\

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\17\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire

Notice, at 20539.

\18\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire

Notice, at 20539.

\19\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire

Notice, at 20539.

\20\ See MIAX Notice, at 20534; Pearl Notice, at 20548; Sapphire

Notice, at 20539. The Exchanges state that they currently lists

options on shares of the following funds: iShares Bitcoin Trust, the

Fidelity Wise Origin Bitcoin Fund, the ARK21Shares Bitcoin ETF, the

Grayscale Bitcoin Trust (BTC), the Grayscale Bitcoin Mini Trust BTC,

and the Bitwise Bitcoin ETF. See MIAX Notice, at 20534 n.29; Pearl

Notice, at 20548 n.29; Sapphire Notice, at 20539 n.29.

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The Exchanges state that both the Exchanges and the Options Price

Reporting Authority (``OPRA'') have the necessary systems capacity to

handle the additional traffic associated with the listing of the

proposed options on the Commodity-Based Trust shares.\21\

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\21\ See MIAX Notice, at 20533-34; Pearl Notice, at 20548;

Sapphire Notice, at 20539.

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III. Discussion and Commission Findings

After careful review, the Commission finds that the proposed rule

changes are consistent with the requirements of the Act and the rules

and regulations thereunder applicable to a national securities

exchange.\22\ Specifically, the

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Commission finds that the proposed rule changes are consistent with

Section 6(b)(5) of the Act,\23\ which requires, among other things,

that the rules of a national securities exchange be designed to prevent

fraudulent and manipulative acts and practices, to remove impediments

to and perfect the mechanism of a free and open market, and, in

general, to protect investors and the public interest.

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\22\ In approving the proposed rule changes, the Commission has

considered the proposed rules' impact on efficiency, competition,

and capital formation. See 15 U.S.C. 78c(f).

\23\ 15 U.S.C. 78f(b)(5).

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Each Exchange proposes to amend its Rule 402(i)(6)(iii) to permit

the Exchanges to list options on shares of a Commodity-Based Trust that

holds multiple crypto assets, provided that the Commodity-Based Trust

meets certain requirements, as described above. The proposed rule

changes will allow the Exchanges to list options on shares of these

Commodity-Based Trusts without further approval from the Commission,

thereby permitting the Exchanges to list these options soon after

listing of the underlying Commodity-Based Trust shares. Permitting the

listing and trading of these options on the Exchanges will provide

investors with an additional vehicle for gaining and hedging exposure

to the underlying Commodity-Based Trust shares.

Options on shares of Commodity-Based Trusts that hold multiple

crypto assets will be subject to the same initial and continued listing

requirements for options on Commodity-Based Trusts that hold a single

crypto asset except that each crypto asset that a Commodity-Based Trust

holds must (A) have an average daily market value of at least $700

million over the last 12 months; and (B) underlie a derivatives

contract that trades on a market with which the Exchange has a

comprehensive surveillance sharing agreement, whether directly or

through common membership in ISG. The requirements in proposed Rule

402(i)(6)(iii) of each Exchange are designed to help ensure that each

of the crypto assets that a Commodity-Based Trust holds is sufficiently

liquid that the creation and redemption process for shares of the

Commodity-Based Trust will operate without disruption and that

Commodity-Based Trust shares will be available to options market makers

and other market participants that may use Commodity-Based Trust shares

to hedge their positions. The Exchanges will consider suspending

opening transactions in Commodity-Based Trust share options if the

requirements in proposed Rule 403(g) of each Exchange are no longer

satisfied.\24\

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\24\ See proposed Exchange Rule 403(g)(3).

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The Exchanges represent that the same surveillance procedures

applicable to ETF options currently listed and traded on the Exchanges

will apply to the trading of options on Commodity-Based Trust

shares.\25\ Each Exchange states that its existing surveillance and

reporting safeguards are designed to deter and detect possible

manipulative behavior that might arise from listing and trading options

on ETFs, including the listing of options on Commodity-Based Trust

shares.\26\ As discussed above, each crypto asset held by a Commodity-

Based Trust must underlie a derivatives contract that trades on a

market with which the Exchanges have a comprehensive surveillance

sharing agreement, whether directly or through common membership in

ISG.\27\ This requirement, in addition to the Exchanges' existing

surveillance procedures, should assist the Exchanges in investigating

suspected manipulations or other trading abuses in Commodity-Based

Trust share options.

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\25\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire

Notice, at 20539.

\26\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire

Notice, at 20539.

\27\ See proposed Exchange Rule 402(i)(6)(iii).

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IV. Conclusion

It is therefore ordered, pursuant to Section 19(b)(2) of the

Act,\28\ that the proposed rule changes (SR-MIAX-2026-13, SR-PEARL-

2026-15, SR-SAPPHIRE-2026-13), are approved.

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\28\ 15 U.S.C. 78s(b)(2).

For the Commission, by the Division of Trading and Markets,

pursuant to delegated authority.\29\

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\29\ 17 CFR 200.30-3(a)(12).

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Sherry R. Haywood,

Assistant Secretary.

[FR Doc. 2026-11031 Filed 6-2-26; 8:45 am]

BILLING CODE 8011-01-P