SEC kept Nasdaq’s proposed cash‑settled bitcoin index options on hold after granting CME Group’s petition for review. In a July 29 order, the Securities and Exchange Commission stayed the staff‑approved proposal while the full Commission considers CME’s challenge; comments are due by August 24. The order did not indicate whether commissioners agreed with CME’s arguments.

CME, the exchange operator, asked the SEC to vacate the approval, asserting that bitcoin is a non‑security commodity and that options based on its value fall under the Commodity Futures Trading Commission’s exclusive jurisdiction. CME also claimed that the SEC’s Division of Trading and Markets exceeded its delegated authority by interpreting Section 717 of the Dodd‑Frank Act.

The SEC’s Division of Trading and Markets had approved Nasdaq PHLX’s proposal on May 22, but Nasdaq could not launch the contracts without obtaining CFTC exemptions that would allow concurrent SEC and CFTC oversight and clearing by the Options Clearing Corporation without registering as a CFTC‑regulated derivatives clearing organization.

The proposed contracts, ticker QBTC, would track the CME CF Bitcoin Real Time Index divided by 100, settle in U.S. dollars, and be exercisable only at expiration. Settlement would use the CME CF Bitcoin Reference Rate New York Variant, also divided by 100.

Nasdaq said the options would let holders of spot bitcoin ETFs hedge or adjust exposure on a national securities exchange within the same margin regime as their ETF positions.

CME and Nasdaq did not respond to a request for comment.