SEC Halts Nasdaq's QBTC Bitcoin Options Amid CME Jurisdiction Challenge

The SEC has put Nasdaq's Bitcoin options on hold after CME Group challenged the regulator's jurisdiction, arguing that the product falls under the Commodity Futures Trading Commission (CFTC) authority.

CME contends that Bitcoin is a commodity, not a security, and therefore derivatives based on its spot price should be regulated by the CFTC. The company warns that allowing SEC-regulated exchanges to offer derivatives on other commodities without falling under the CFTC's oversight regime would set a precedent.

Nasdaq had planned to use the CME CF Bitcoin Reference Rate for both the underlying index and the final cash settlement of the contracts, but the dispute has put trading for QBTC on hold indefinitely. The SEC will accept public comments on the case until August 24 before making a decision.