SEC pauses Nasdaq PHLX bitcoin index options after CME challenges jurisdiction, highlighting unresolved regulatory turf disputes.
DeFi & Yields ·
The SEC has suspended Nasdaq PHLX's cash-settled bitcoin index options following CME Group's successful petition for regulatory review, with the exchange operator contending the contracts fall under exclusive CFTC authority rather than SEC oversight. CME argues bitcoin qualifies as a non-security commodity and that options referencing its value directly constitute commodity option swaps outside the SEC's jurisdiction, warning the approval could set precedent for securities exchanges to list derivatives on other non-commodity assets. The full Commission will consider written statements due August 24 before deciding whether to uphold or reverse the May 22 staff approval. The dispute underscores competing interpretations of regulatory authority between the two agencies, potentially delaying institutional crypto derivatives products and creating uncertainty around how such instruments will ultimately be classified and supervised.