The U.S. Securities and Exchange Commission has frozen approval for Nasdaq to list Bitcoin index options tied to QBTC and will review the decision again. The pause follows a legal challenge filed by CME Group in June, which argues that because Bitcoin is a commodity, options linked to its value should fall under the jurisdiction of the Commodity Futures Trading Commission rather than the SEC. The approval has been stayed since June 11, when CME submitted its notice challenging the action. Interested parties now have until Aug. 24 to file comments supporting or opposing the matter. If CME’s argument prevails, Nasdaq may need to register as a CFTC-regulated futures or swaps venue, or redesign the contract so that it tracks a securities-based product instead.
The U.S. Securities and Exchange Commission has frozen Nasdaq’s approval to list Bitcoin index options tied to QBTC and is set to reconsider the decision.
According to CoinDesk, CME Group filed a legal challenge in June arguing that Bitcoin is a commodity, which means options linked to its value should be overseen by the Commodity Futures Trading Commission, not the SEC.
The approval has been on hold since June 11, when CME submitted its notice of challenge. Parties involved can file comments in support or opposition through Aug. 24.
If CME’s position is upheld, Nasdaq would need to register as a CFTC-regulated futures or swaps trading venue, or redesign the contract so it tracks a securities-based product.
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