SEC Sets Deadline for Nasdaq Bitcoin Options Review Amid Jurisdictional Debate

SEC Sets Deadline for Bitcoin Options Review

The U.S. Securities and Exchange Commission (SEC) has established an August 24, 2026 deadline for written statements concerning Nasdaq PHLX’s proposed Bitcoin index options. This decision comes after the SEC granted a petition from CME Group, requesting a full Commission review, effectively putting Nasdaq’s approval on pause.

Current Status of Nasdaq’s Proposal

The SEC’s order, issued on July 29 and published in the Federal Register on August 3, maintains that the approval of Nasdaq’s Bitcoin options remains stayed until further notice from the Commission. The SEC did not make a ruling on the merits of CME’s jurisdictional challenge, which claims that Bitcoin options should fall under the Commodity Futures Trading Commission’s (CFTC) exclusive jurisdiction.

Details of the Proposed Bitcoin Options

Nazdaq’s proposed options, designated under the ticker QBTC, are cash-settled and employ a European-style contract design. Each contract would reference the CME CF Bitcoin Real Time Index, divided by 100, with the final settlement relying on the New York variant of the CME CF Bitcoin Reference Rate. These options aim to provide a new avenue for trading Bitcoin derivatives directly.

CME’s Jurisdictional Challenge

CME Group argues that Bitcoin should be classified as a non-security commodity, asserting that options based on Bitcoin’s value qualify as commodity swap options. This legal interpretation prompted CME to call into question the SEC’s authority in overseeing the proposed options. CME had initially filed an appeal on June 11, which automatically stayed Nasdaq’s approval, and submitted a formal petition on June 18 seeking the withdrawal of the SEC staff’s approval.

Next Steps for Stakeholders

With the deadline for public comment set for August 24, interested parties are encouraged to submit their statements both supporting or opposing the proposed Bitcoin options. Following this period, the SEC commissioners will assess the comments to determine whether to uphold or overturn the initial approval. There is currently no specified timeline for the SEC’s final decision.

Implications for Bitcoin and Regulation

The outcome of this review could have wider implications, potentially affecting how other non-security commodities are regulated under SEC rules. Nasdaq argues that joint oversight from both the SEC and CFTC could facilitate a greater adoption of Bitcoin derivatives, yet it must still navigate multiple regulatory pathways before the options can be traded.