SEC Freezes Nasdaq Bitcoin Options Amid CME Challenge

The US Securities and Exchange Commission (SEC) has put its approval of Nasdaq's cash-settled bitcoin index options on hold. The decision comes after CME Group filed a legal challenge in June, arguing that Bitcoin is a commodity and thus falls under the Commodity Futures Trading Commission (CFTC)'s exclusive jurisdiction.

Nasdaq had received conditional approval from the SEC to list QBTC, but this required exemptions from the CFTC before it could launch. The CME Group argued that allowing Nasdaq to operate such options without registering under the CFTC framework would set a precedent for other securities exchanges to list derivatives on commodities.

The stay has been in place since June 11 and will remain suspended while the full commission reviews the earlier approval. Interested parties have until August 24 to submit statements supporting or opposing the decision.