The U.S. Securities and Exchange Commission has postponed a decision on new listing standards for options tied to crypto exchange-traded products, moving a closely watched deadline from September 27 to November 11, 2026.
The SEC disclosed the extension on September 21 in connection with Nasdaq ISE filing SR-ISE-2026-42. The exchange is seeking to amend its rules governing which securities can serve as underlying assets for listed options, specifically targeting commodity-based trusts holding one or more digital commodities.
September 27 had been the SEC’s original 45-day deadline following publication of the proposal in the Federal Register on August 13. Under the Securities Exchange Act, however, the Commission can extend that review period to as much as 90 days.
It has now exercised that authority, designating November 11 as the date by which it must approve or disapprove the proposal, or begin proceedings to determine whether it should be rejected.
Proposal Could Broaden Crypto ETF Options Market
The proposal is more significant than an application to launch options on a single cryptocurrency ETF.
Nasdaq ISE wants to establish generic eligibility criteria for options on commodity-based trusts holding digital commodities. That could create a standardized route for qualifying crypto ETPs rather than requiring exchanges to navigate separate regulatory proceedings for every individual product.
Under the proposed rules, each underlying digital commodity would generally need an average daily global market value of at least $700 million during the preceding 12 months.
The proposal also incorporates market-surveillance requirements. Each digital commodity would generally need to underlie a derivatives contract traded on a market covered by a comprehensive surveillance-sharing agreement, either directly or through membership in the Intermarket Surveillance Group.
However, the proposed framework allows as much as 15% of a trust’s net asset value to consist of digital commodities that do not satisfy that derivatives-market requirement.
That provision is particularly relevant for multi-asset crypto products, where the largest holdings may have established regulated derivatives markets while smaller components do not.
The SEC said it received no public comments on the Nasdaq ISE proposal during the initial comment period.
Options Add Another Layer to Crypto ETF Market
Listed options can significantly expand the usefulness of crypto ETPs for institutional and sophisticated investors. Rather than simply buying or selling ETF shares, investors can use calls and puts to hedge positions, generate income, express views on volatility or construct strategies with defined risk profiles.
Bitcoin ETF options are already established in the U.S. market. The SEC has also approved changes increasing position and exercise limits on options tied to BlackRock’s iShares Bitcoin Trust, reflecting the increasing scale and liquidity of the market.
The Nasdaq ISE proposal would push that development toward a more generalized framework as the range of listed crypto products expands beyond Bitcoin and Ether.
It also follows broader changes to exchange rules governing commodity-based trusts. Nasdaq ISE said its proposal is intended to align its options standards with revised Nasdaq listing rules for the underlying crypto products themselves.
The immediate regulatory milestone, however, has changed. Investors waiting for a September 27 decision should no longer expect one. The SEC acted six days before that deadline and formally extended its review.
November 11 is now the key date, although even then an outright approval or rejection is not guaranteed: securities law allows the Commission to institute further proceedings to determine whether the proposal should ultimately be disapproved.
