CME Challenges SEC Approval of Nasdaq's Bitcoin Index Options

CME Group has challenged the U.S. Securities and Exchange Commission's approval of Nasdaq's cash-settled Bitcoin index options product, citing jurisdictional disputes.

The SEC conditionally approved the listing of Nasdaq PHLX's cash-settled Bitcoin index options on July 29, but CME argued that it falls under the exclusive jurisdiction of the Commodity Futures Trading Commission because Bitcoin is a commodity rather than a security.

CME further contends that the SEC's Division of Trading and Markets applied a new legal interpretation beyond its delegated authority and should vacate the approval. It also argues that keeping the decision in place could set a precedent for options or futures tied to other non-security commodities to be listed under SEC rules.