The decision regarding proposals to permit options on spot Bitcoin exchange-traded funds (ETFs) has once again been postponed by the U.S. Securities and Exchange Commission (SEC). This delay impacts exchanges such as Cboe, MIAX, Nasdaq ISE, and NYSE American, all of which had expressed interest in launching options trading for recently approved Bitcoin ETFs.

In an effort to solicit input on the effective regulation of options on Bitcoin ETFs, the SEC has lengthened the public comment period by 21 days, with an additional 14 days allocated for rebuttal comments, making the total extension period 35 days. One of the primary concerns raised is whether these options should be subject to the same position limits as stock options, taking into account the existing Bitcoin supply when establishing these limits.

This decision underscores the SEC’s careful stance on the integration of cryptocurrency products into traditional financial markets. The repeated delays underscore the commission’s acknowledgment of the intricacies and risks associated with crypto-linked financial instruments. Feedback indicates that enabling options trading on Bitcoin ETFs could provide investors with valuable tools for hedging and managing risks.

Looking forward, ongoing discussions on cryptocurrency regulations, including the secure integration of advanced trading instruments, will persist. The upcoming Benzinga Future of Digital Assets event on Nov. 19 is anticipated to delve into these evolving regulatory frameworks.

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