Key facts
- The SEC has paused Nasdaq's approval of cash-settled bitcoin index options (QBTC).
- CME Group challenged the approval, asserting bitcoin options fall under CFTC jurisdiction.
- The SEC will reconsider its earlier approval following CME's legal challenge.
- Interested parties can submit comments on the dispute by Aug. 24.
The U.S. Securities and Exchange Commission (SEC) has put a hold on Nasdaq's approval for cash-settled bitcoin index options, known as QBTC, to re-evaluate the decision after CME Group filed a legal challenge. CME argues that because bitcoin is classified as a commodity, any options directly tied to its value should fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), rather than the SEC.