SEC Approves Binary Options Tied to Coinbase and MARA Metrics

The U.S. Securities and Exchange Commission has approved the listing of binary options tied to corporate performance metrics, allowing investors to trade contracts based on figures such as Coinbase’s trading volume and Bitcoin production by mining companies, according to CryptoNews.

In an October 13 statement cited by CryptoNews, SEC Chairman Paul Atkins said the Commission voted to approve a securities exchange rule change covering standardized options linked to key performance indicators reported by publicly traded companies. The contracts settle in cash at expiration and remain subject to existing securities exchange rules covering margin requirements, trading halts, and market makers.

Covered Companies and Metrics

Companies covered by the proposal include Coinbase, Robinhood, and Bitcoin miner MARA. For Coinbase, eligible performance indicators include total trading volume, transaction revenue, total revenue, subscription and services revenue, and diluted net income per share.

For Bitcoin miner MARA, covered indicators include Bitcoin production, allowing contracts to reference operational results instead of the market price of Bitcoin itself. Robinhood customer activity and revenue figures are also included among the available performance measures.

Regulatory Boundaries and CFTC Jurisdiction

According to CryptoNews, the SEC approval applies solely to specified exchange-traded contracts and does not restrict Commodity Futures Trading Commission oversight of differently structured products. Atkins noted that the regulatory treatment ensures the contracts operate within the existing securities framework rather than as unrestricted wagers.

Key facts

• The SEC approved binary options tied to corporate performance metrics including Coinbase volume and MARA Bitcoin production.
• Contracts settle in cash at expiration and follow European-style exercise rules.
• SEC Chairman Paul Atkins stated the approval applies only to specified exchange-traded contracts.
• Products remain subject to exchange rules governing customer accounts, margin requirements, and trading halts.