SEC is Studying New Regulation for Bitcoin Options Trading

The United States Securities and Exchange Commission (SEC) is seeking feedback on a proposed rule change that would allow for the trading of options on Bitcoin exchange-traded products (ETPs).

The SEC is interested in understanding the potential impact of listing these options on the market, especially during times of volatility.

The review will also assess whether the current surveillance and enforcement measures of exchanges are adequate for handling the unique aspects of Bitcoin options.

Initial comments on the proposed rule change must be submitted within 21 days after the filing, with the final deadline being May 15, 2024.

Rebuttal comments can be submitted until May 29, 2024. Bitcoin options are a type of financial instrument that gives the buyer the right, but not the obligation, to buy or sell Bitcoin at a predetermined price by a certain date.

These options are typically used by knowledgeable traders who are familiar with option pricing and market movements.