The SEC has frozen the conditional approval of Nasdaq’s cash-settled Bitcoin index options known as QBTC following a jurisdictional challenge from the CME Group. The CME argues that Bitcoin is a commodity, not a security, and that cash-settled options should fall under CFTC oversight rather than SEC jurisdiction. Both institutions are fighting over which regulatory body should oversee Bitcoin derivatives products. The public comment period runs through August 24, after which the SEC must decide whether to uphold its conditional approval or require Nasdaq to register with the CFTC instead. This decision could reshape the regulatory framework for Bitcoin derivatives for years to come.
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