SEC Pauses Nasdaq's Bitcoin Index Options Amid CME Challenge

The U.S. Securities and Exchange Commission (SEC) has suspended its approval of Nasdaq's proposed cash-settled Bitcoin index options, pending a review of a jurisdictional challenge filed by CME Group.

Nasdaq had received SEC approval in May to list the contracts under the ticker QBTC, but the product could not launch immediately as it required exemptions from the Commodity Futures Trading Commission (CFTC).

CME challenged the decision in June, arguing that Bitcoin is a commodity and that options tied directly to its value fall under the CFTC's exclusive authority.

The dispute is larger than one options product, asking whether a securities exchange can list a derivative based directly on a commodity through SEC approval and CFTC exemptions, rather than registering under the regulatory framework used by futures exchanges.