SEC Suspends Nasdaq Bitcoin Options Over Jurisdiction Dispute with CME

The SEC has temporarily suspended its authorization for Nasdaq to list Bitcoin options after CME Group challenged the agency's authority over this type of contract.

CME argues that options directly tracking Bitcoin's price should fall under the CFTC's jurisdiction, as Bitcoin is considered a commodity and not a security. The SEC must review the authorization granted to Nasdaq by August 24, giving participants time to submit statements on the process.

Nasdaq proposed an index calculated directly from Bitcoin's price for its options product, which would be traded on Nasdaq PHLX under the ticker QBTC. Settlement would occur in cash, and positions related to Bitcoin ETFs could be managed within a national securities exchange.