SEC Puts Nasdaq Bitcoin Options on Hold Amid CME Jurisdiction Challenge

The U.S. Securities and Exchange Commission (SEC) has set an August 24 deadline for written statements supporting or opposing Nasdaq PHLX's proposed Bitcoin index options.

Nasdaq had secured approval from SEC staff on May 22 to list the cash-settled, European-style options under the ticker QBTC. However, CME Group filed a petition with the full Commission on June 18, arguing that Bitcoin index options are commodity swaps falling under the Commodity Futures Trading Commission's (CFTC) exclusive federal jurisdiction.

CME claims that SEC staff exceeded their delegated authority in approving the rule change and that the Commodity Exchange Act gives the CFTC exclusive authority over the contracts. The exchange operator also warned that approval could create a route for securities exchanges to list derivatives tied to other non-security commodities under SEC rules.