CME Challenges Nasdaq's Bitcoin Options Approval Over Jurisdictional Dispute

CME Group, the U.S. derivatives exchange, has challenged Nasdaq's approval to list cash-settled Bitcoin index options, claiming that the product falls under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC).

The CME argues that since the product is based on a commodity rather than a security, it should be overseen by the CFTC, not the SEC. The exchange also contends that the SEC's Division of Trading and Markets exceeded its delegated authority by applying a new legal interpretation.

Nasdaq expects QBTC to provide Bitcoin spot ETF investors with a hedging vehicle within the same securities market. However, this has fueled a jurisdictional dispute between the two exchanges.