The U.S. Securities and Exchange Commission kept Nasdaq PHLX’s proposed Bitcoin index options on hold after granting CME Group’s petition for a full Commission review.
Summary
- SEC commissioners granted CME’s petition, keeping Nasdaq’s Bitcoin index options approval stayed pending further order.
- Written statements supporting or opposing the approval must reach the SEC by August 24, 2026.
- CME argues Bitcoin index options are commodity swaps falling under the CFTC’s exclusive federal jurisdiction.
The SEC issued the order on July 29, and its Aug. 3 publication in the Federal Register set Aug. 24 as the deadline for written statements supporting or opposing the earlier approval.
The order does not decide whether CME’s jurisdictional challenge is correct. It accepts the matter for review and leaves the May 22 approval stayed until the Commission issues another order.
SEC review leaves Nasdaq Bitcoin options unable to launch
Nasdaq PHLX proposed cash-settled, European-style options under the ticker QBTC. The contracts would track the CME CF Bitcoin Real Time Index divided by 100. Final settlement would use the New York variant of the CME CF Bitcoin Reference Rate, also divided by 100.
The proposed rules set a 24,000-contract position and exercise limit. Unlike options on spot Bitcoin ETF shares, QBTC would reference an index tracking Bitcoin itself. That distinction created the central dispute because ETF shares are securities, while Bitcoin is treated as a commodity for federal derivatives regulation.
SEC staff approved the rule change through delegated authority on May 22. CME filed notice of its planned appeal on June 11, automatically staying that decision. It submitted its formal petition on June 18 and asked the commissioners to vacate the approval.
CME says the contracts belong exclusively under CFTC rules
CME argues that Bitcoin is a non-security commodity and an option based directly on Bitcoin’s value is a commodity option swap. On that basis, it says the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive authority over the contracts.
The exchange operator called the SEC staff’s legal interpretation “erroneous” and argued that the Division of Trading and Markets exceeded its delegated authority. Those remain CME’s claims. The SEC’s review order did not endorse them or make findings on the merits.
CME also said the approval could expose its exchanges and clearing business to new regulatory costs while allowing a competing product. It asked the full Commission to withdraw the staff approval rather than await the separate CFTC exemption process.
Nasdaq says joint oversight offers a compliant route
The May approval took the opposite legal view. SEC staff reasoned that Dodd-Frank Section 717 could permit concurrent SEC and CFTC jurisdiction when the CFTC grants appropriate relief. Nasdaq also said the product could let spot Bitcoin ETF investors hedge exposure on a national securities exchange within the same margin framework.
However, SEC approval alone was never enough to begin trading. Nasdaq acknowledged that it must obtain all necessary CFTC exemptions, including relief allowing the Options Clearing Corporation to clear the contracts without registering as a CFTC derivatives clearing organization. OCC must also update its standardized options risk disclosure.
As previously reported, Nasdaq has continued expanding its crypto infrastructure by distributing exchange order-book data through Pyth. In related coverage, Nasdaq and CME partnered on crypto index futures tracking several digital assets. The current dispute is narrower because it concerns options tied directly to Bitcoin rather than Bitcoin ETF shares.
Aug. 24 filings will shape the SEC’s next decision
Interested parties now have until Aug. 24 to file statements. After reviewing those submissions, commissioners will determine whether the staff approval should stand. The order provides no deadline for a final Commission decision.
The case could affect more than QBTC. CME warned that approval could create a route for securities exchanges to list derivatives tied to other non-security commodities under SEC rules. That is a forward-looking legal argument, not an outcome established by the Commission.
For now, Nasdaq’s Bitcoin index options remain stayed. Even if the SEC later restores the approval, Nasdaq would still need the required CFTC relief and OCC approvals before listing the contracts.
