The U.S. Securities and Exchange Commission (SEC) has paused Nasdaq's approval of cash-settled bitcoin index options and will reconsider the decision following a legal challenge from CME Group:
- SEC has stated that the approval of QBTC will continue while the CME challenge is reviewed:
- CME argues that because bitcoin is a commodity, options tied to its value fall under the CFTC’s jurisdiction:
- The approval remains suspended until August 24, when interested parties can submit their comments:
In May, the SEC granted Nasdaq PHLX conditional approval to list cash-settled bitcoin index options under the ticker QBTC, but the product still required exemptions from the Commodity Futures Trading Commission (CFTC):
CME Group challenged the approval in June, arguing that bitcoin is a commodity and options tied directly to its value fall under the CFTC’s exclusive jurisdiction:
If CME is correct, the SEC would have no authority to approve QBTC, and Nasdaq would need to register as a CFTC-regulated futures or swaps venue:
QBTC will remain suspended while the full commission reviews the earlier approval:
