The U.S. Securities and Exchange Commission has granted CME Group's petition for review of its earlier approval permitting Nasdaq PHLX to list and trade cash-settled Bitcoin index options. The approval remains stayed while the full Commission reconsiders the decision, preventing the product from launching during the review period.

Background: Accelerated Approval and CME's Challenge

Nasdaq's planned Bitcoin index options received accelerated approval from the SEC in May 2026. CME Group subsequently challenged the decision, requesting that the Commission examine the regulatory and jurisdictional questions surrounding the product.

CME's challenge centers on the treatment of Bitcoin-based derivatives and the regulatory responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC). The proposed options are tied to Bitcoin pricing benchmarks associated with CME CF reference rates, which adds a further dimension to the dispute between the two regulated market operators. CME already lists Bitcoin futures and options on its own exchange, and the petition underscores the competitive stakes as multiple U.S. venues seek to offer crypto-linked derivatives to institutional and retail traders.

The jurisdictional question itself is not new. Bitcoin is classified as a commodity under U.S. law, placing it primarily under the CFTC's oversight, yet securities exchanges such as Nasdaq PHLX fall under the SEC's purview. When a securities exchange lists a derivative tied to a commodity benchmark, both regulators' authorities can intersect—a dynamic that has shaped the rollout of crypto derivatives products since the first Bitcoin futures launched in 2017.

Trading Remains Paused Pending Review

The stay means Nasdaq PHLX cannot begin trading its Bitcoin index options until the SEC completes its review or takes further action. The SEC's decision to grant the petition does not constitute a final rejection of Nasdaq's proposal. Rather, it provides commissioners additional time to evaluate the approval and consider arguments from CME, Nasdaq, and other interested parties.

UPDATE: The SEC formally grants CME's petition for review of Nasdaq's bitcoin options approval, keeping it stayed with written statements due August 24. pic.twitter.com/lF6kdcBPYW

— Cointelegraph (@Cointelegraph) August 3, 2026

Comment Window Open Through August 24

The Commission has invited interested parties to submit written statements either supporting or opposing the approval. All submissions are due by August 24, giving market participants an opportunity to weigh in on matters including competition, investor protection, jurisdictional authority, and market oversight.

The outcome of the review could influence how future cryptocurrency derivatives are listed and traded across U.S. securities and commodities markets. The approval of spot Bitcoin exchange-traded funds in January 2024 marked a turning point for regulated crypto investment products, and options tied to Bitcoin benchmarks represent a further expansion of that ecosystem. Until the SEC issues another decision, Nasdaq's Bitcoin options approval will remain on hold.