The U.S. Securities and Exchange Commission has paused its approval of Nasdaq’s cash-settled Bitcoin index options, known as QBTC, and will review the decision again, according to CoinDesk. The agency froze the approval through Aug. 24 and is seeking public comment while the review is underway. Until the commission completes that process, QBTC will remain on hold. The move comes in response to a legal challenge from CME Group, which argued that Bitcoin is a commodity and that options tied to it should fall under the exclusive jurisdiction of the Commodity Futures Trading Commission rather than the SEC. The SEC had conditionally approved the product in May, subject to a CFTC exemption. If CME’s argument is upheld, Nasdaq would need to register as a futures venue overseen by the CFTC or redesign the contract structure.
The U.S. Securities and Exchange Commission has paused its approval of Nasdaq’s cash-settled Bitcoin index options product, QBTC, and will reconsider the decision, according to CoinDesk.
The SEC froze the approval through Aug. 24 and is collecting comments from interested parties. QBTC will stay suspended until the commission finishes its review.
The agency had conditionally approved the listing in May, but only if the product obtained an exemption from the Commodity Futures Trading Commission. CME Group objected in June, arguing that Bitcoin is a commodity and that options linked to it should fall under the CFTC’s exclusive jurisdiction rather than the SEC’s.
If CME’s position prevails, Nasdaq would need to register as a futures platform regulated by the CFTC or redesign the contract.
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