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 review a challenge from CME Group. The SEC issued a review order on July 29, which established August 24 as the deadline for interested parties to submit written statements supporting or opposing the previous approval.

Nasdaq PHLX had proposed cash-settled, European-style Bitcoin options under the ticker QBTC, tracking the CME CF Bitcoin Real Time Index divided by 100. However, CME Group argued that these options fall under the Commodity Futures Trading Commission's (CFTC) authority and should be classified as commodity option swaps.

The SEC's review does not determine whether CME Group's challenge is valid, but rather formally accepts the matter for review and keeps the SEC staff's May 22 approval suspended until the Commission issues another decision. As a result, Nasdaq PHLX will not be able to launch its proposed Bitcoin index options until the SEC completes its review.