SEC to review Nasdaq bitcoin options approval after CME challenge

The SEC has suspended Nasdaq’s approval to list cash-settled bitcoin index options (QBTC) after CME Group challenged the decision. CME argues that because bitcoin is a commodity, derivatives tied to its value should fall under CFTC jurisdiction rather than the SEC’s authority. The move creates regulatory uncertainty for a proposed bitcoin options product that had already received conditional approval in May and still needed CFTC exemptions to launch. The SEC’s review keeps QBTC on hold while the commission reconsiders the legal basis of the approval, with public comments due by Aug. 24. For crypto markets, the case is important because it could shape which regulator controls bitcoin-linked derivatives and whether securities exchanges can list similar products in the future.