SEC Suspends Approval of Nasdaq Bitcoin Options Amid CME Challenge

The US Securities and Exchange Commission (SEC) has put on hold its approval of Nasdaq's cash-settled Bitcoin index options, pending a review triggered by CME Group's legal challenge. In May, the SEC granted Nasdaq PHLX conditional approval to list these options under the ticker QBTC, but they still require exemptions from the Commodity Futures Trading Commission (CFTC) before launching.

CME Group challenged the approval in June, arguing that Bitcoin is a commodity and therefore its derivatives fall under CFTC jurisdiction rather than SEC's. If CME is right, Nasdaq would need to register as a CFTC-regulated futures or swaps venue, or redesign the contracts to track a security like a spot Bitcoin exchange-traded fund.

The SEC has frozen the approval and given interested parties until August 24 to submit statements supporting or opposing it. The stay has been in place since CME filed notice of its challenge on June 11.