SEC Approves Binary Options on Coinbase, Robinhood and Marathon Performance
SEC greenlights binary bets on crypto stock milestones
The U.S. Securities and Exchange Commission has approved a new type of contract that lets traders bet on whether certain crypto-linked companies will hit specific business targets.
SEC Chairman Paul Atkins signed off on the rule change filed by Cboe Global Markets on Oct. 13. The contracts will be cash-settled and European-style, meaning they can only be exercised when they expire, not before.
The binary options are tied to key performance indicators at 23 publicly traded U.S. companies. Among those are Coinbase Global (COIN), Robinhood Markets (HOOD) and MARA Holdings (MARA).
What the contracts measure
- Coinbase: trading volume
- Robinhood: customer count and revenue
- MARA Holdings: bitcoin production
A binary option asks a simple yes-or-no question. For example, will Coinbase's trading volume exceed a set number by a specific date? If the trader's answer is correct, they receive a fixed payout. If not, they lose their investment.
The contracts will settle based on figures in companies' official SEC filings, not numbers shown in earnings presentations.
What the SEC statement says
Atkins said the approval does not affect similar contracts already overseen by the Commodity Futures Trading Commission, such as those on prediction market platform Kalshi. He stated that agency turf fights had hindered innovation for decades and described the approval as reflecting "a new spirit of harmony, innovation, and investor choice."
Timing and rollout
Cboe plans to list the contracts later this month. Robinhood is expected to be the first brokerage to offer them to retail investors.
Trading cannot begin until Cboe Clear U.S., the clearing house that backs the contracts, receives provisional registration. A separate application for that registration is currently pending.
Why this matters for crypto investors
Eleanor Terrett, host of Crypto America, noted on X that the move creates a new way to trade crypto-linked company performance beyond simply betting on bitcoin's price. It gives investors a tool to take positions based on how well individual crypto businesses perform, rather than only on the broader cryptocurrency market.
What is still unclear
The source material notes that differently structured contracts may still fall under CFTC jurisdiction, but it does not specify exactly which contracts those might be or when Cboe Clear U.S. will receive its provisional registration.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.