SEC Delays Nasdaq Bitcoin Index Options Amid CME Challenge

The US Securities and Exchange Commission (SEC) has delayed the launch of Nasdaq PHLX's proposed Bitcoin index options after agreeing to conduct a full review of the product. The SEC issued a review order on July 29, with an August 24 deadline for interested parties to submit written statements supporting or opposing the previous approval.

The SEC staff initially approved the Nasdaq rule change through delegated authority on May 22. However, CME Group filed notice of its intention to appeal on June 11, which automatically stayed the approval. CME then submitted its formal petition on June 18 and requested that the full Commission overturn the staff decision.

CME argues that Bitcoin is a non-security commodity and that options directly linked to Bitcoin's value should be classified as commodity option swaps. According to CME, the Commodity Exchange Act gives the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over these types of Bitcoin derivatives.