The US Securities and Exchange Commission (SEC) has formally granted a petition from CME Group seeking review of a prior staff decision that conditionally approved Nasdaq PHLX’s plans to list and trade cash-settled Bitcoin index options.
As a result, the approval remains stayed while the full Commission examines the matter.
In May 2026, the SEC’s Division of Trading and Markets, acting under delegated authority, gave accelerated approval to Nasdaq PHLX’s proposed rule change.
The product, referred to as Nasdaq Bitcoin Index options or QBTC, would consist of cash-settled, European-style contracts based on an index derived from the CME CF Bitcoin Real Time Index. Launch remained contingent on obtaining necessary exemptions from the Commodity Futures Trading Commission.
CME Group challenged the decision, filing a notice of intention to petition for review in mid-June and a formal petition shortly thereafter.
The exchange operator contends that Bitcoin qualifies as a non-security commodity and that options linked directly to its value constitute commodity option swaps falling under the exclusive jurisdiction of the CFTC.
CME argues that the SEC lacks authority to approve such contracts and that CFTC exemptions cannot properly transfer oversight of a product lacking securities characteristics to the securities regulator.
The challenge also references provisions of the Dodd-Frank Act limiting the agencies’ ability to reclassify instruments covered by the swap definition.
Under SEC rules of practice, the notice of intention automatically stayed the delegated approval.
On July 29, 2026, the Commission issued an order granting CME’s petition for review.
The order directs that the approval remain stayed pending further Commission action and sets a deadline of August 24, 2026, for any party or other person to submit written statements supporting or opposing the original approval.
The development highlights ongoing questions about the division of regulatory authority over crypto-related derivatives between the SEC and CFTC.
CME already offers regulated Bitcoin futures and options under the CFTC framework.
Nasdaq’s proposed product would have provided an alternative venue accessible through the securities markets infrastructure, including the Options Clearing Corporation, potentially broadening participation among equity traders.Nasdaq PHLX cannot list the contracts while the stay is in effect.
The Commission’s order does not express a view on the merits of CME’s jurisdictional arguments.
Interested parties now have the opportunity to file statements before the August 24 deadline, after which the Commission will further consider the matter.
This pause introduces additional uncertainty into the timeline for expanded Bitcoin options trading on US securities exchanges.
Market participants and industry observers will closely monitor the public statements and the Commission’s subsequent decision, which could clarify the regulatory treatment of similar cash-settled crypto index products.
The episode underscores the complexities of integrating digital assets into traditional financial market structures amid overlapping statutory frameworks. Clearer delineation of agency roles could ultimately support more consistent oversight and product development, though the immediate effect is a continued delay for Nasdaq’s initiative.
