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SEC freezes Nasdaq QBTC bitcoin options approval amid CME challenge
The approval stays suspended while the SEC reviews the jurisdiction dispute, with public comments due Aug. 24.
The U.S. Securities and Exchange Commission has paused Nasdaq PHLX's conditional approval for cash-settled bitcoin index options under the ticker QBTC, according to an SEC order released for public inspection on July 31. The agency said it will reconsider the decision following a legal challenge from CME Group.
CoinDesk reports that CME argued bitcoin is a commodity, so options tied to its value fall under the CFTC's exclusive jurisdiction rather than the SEC's authority. CME also said the SEC and other parties cannot use CFTC exemptions to effectively move the product from one regulator to another.
The SEC approval granted in May would have required additional exemptions from the Commodity Futures Trading Commission before the product could launch. The review includes a call for interested parties to submit statements supporting or opposing the paused approval, with comments due Aug. 24.
CoinDesk adds that Nasdaq's QBTC proposal would use CME CF benchmarks for both the underlying index and the final settlement price. If CME's view prevails, the SEC would have no authority to approve QBTC, which could require redesigning the contracts or shifting Nasdaq into a CFTC-regulated venue framework.
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