The U.S. Securities and Exchange Commission has set August 24, 2026 as the deadline for interested parties to submit written statements supporting or opposing the approval of Nasdaq PHLX's cash-settled bitcoin index options. According to the SEC's July 29 order published in the Federal Register, the agency granted CME Group's petition for a full Commission review, keeping the approval stayed pending further order. The SEC's review does not decide whether CME's jurisdictional challenge is correct, but accepts the matter for review while leaving the May 22 approval stayed until the Commission issues another order.
CME Group challenged the approval in June, arguing that bitcoin is a commodity and options tied directly to its value fall under the CFTC's exclusive jurisdiction rather than the SEC's authority. As reported by the SEC, CME argues that Bitcoin is a non-security commodity and an option based directly on Bitcoin's value is a commodity option swap, giving the Commodity Exchange Act 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. CME also warned that the approval could expose its exchanges and clearing business to new regulatory costs while allowing a competing product.
Nasdaq PHLX proposed cash-settled, European-style options under the ticker QBTC that would track the CME CF Bitcoin Real Time Index divided by 100. The contracts would use the New York variant of the CME CF Bitcoin Reference Rate, also divided by 100, with a 24,000-contract position and exercise limit. Unlike options on spot Bitcoin ETF shares, QBTC would reference an index tracking Bitcoin itself, creating the central dispute because ETF shares are securities while Bitcoin is treated as a commodity for federal derivatives regulation. The May approval took the opposite legal view, with SEC staff reasoning that Dodd-Frank Section 717 could permit concurrent SEC and CFTC jurisdiction when the CFTC grants appropriate relief.
Even if the SEC later restores the approval, Nasdaq would still need the required CFTC relief and OCC approvals before listing the contracts. The petition also warned that the approval could set a precedent allowing securities exchanges to list derivatives on other commodities. The CME already operates regulated bitcoin futures and options markets, while Nasdaq's QBTC would compete for the same trading activity without Nasdaq registering under the CFTC framework that governs the CME. The case could affect more than QBTC, with CME warning that approval could create a route for securities exchanges to list derivatives tied to other non-security commodities under SEC rules.
