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 reports from the SEC, the contracts will settle in cash at expiration and remain subject to existing securities exchange rules covering margin requirements, trading halts and market makers. SEC Chairman Paul Atkins stated in an October 13 statement that the Commission had voted to approve a securities exchange rule change covering standardized options linked to key performance indicators reported by publicly traded companies. As per BigGo Finance, the approval applies to 23 US-listed companies, opening a path for investors to take direct positions on individual corporate metrics. The approval was filed by Cboe Global Markets and covers cash-settled, standardized options that will be listed and traded in substantially the same form as existing non-binary standardized options.
The approved binary options reference specific performance indicators for major cryptocurrency and financial companies. Coinbase's 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, the covered indicators include Bitcoin production, allowing contracts to reference operational results instead of the market price of Bitcoin itself. Robinhood's customer activity and revenue figures are among the performance measures available for similar contracts. Under the approval, investors will be able to take 'yes' or 'no' positions on whether metrics such as Coinbase's trading volume, Robinhood's customer count and revenue, and MARA's bitcoin production will exceed or fall short of predetermined thresholds. If the prediction is correct, the contract pays a fixed $1 (approximately ₹160); if incorrect, it expires worthless with no payout. The metrics used for settlement will be figures reported in documents companies file with the SEC, rather than figures disclosed in earnings presentation materials.
The SEC's approval requires the new products to operate within the existing securities exchange framework. According to Atkins, the contracts will be listed and traded in substantially the same manner as conventional standardized options already available on securities exchanges. Exchange rules governing customer accounts and margin requirements will apply to the products, alongside procedures covering trading halts and auction mechanisms. Market makers will operate under exchange appointment and quoting requirements, while orders will be subject to existing rules for order types, execution instructions and time-in-force conditions. The products are classified as National Market System securities and will trade on a regulated securities exchange under rules governing standardized options. As per BigGo Finance, the contracts are European-style, meaning they can only be exercised at expiration. Cboe plans to list the contracts this month, and Robinhood is expected to be the first brokerage to offer them to retail investors. However, trading cannot begin until Cboe Clear U.S., which will handle clearing, obtains provisional registration, and a separate application remains pending.
Recent financial results from the companies covered by the approved contracts provide context for potential trading scenarios. Coinbase reported a second-quarter 2026 net loss of $359.5 million, while total revenue fell 18.5% from a year earlier to $1.22 billion. Despite the revenue decline, the exchange's share of global crypto trading reached 10.3%, compared with 9.1% in the preceding quarter. MARA reported production of 2,422 BTC in its August 6 second-quarter earnings release, up 3% from a year earlier, while recording $174.9 million in revenue and a $611.3 million net loss during the quarter.
The SEC's decision specifically applies to the approved standardized options traded on securities exchanges, while leaving other regulatory structures intact. Atkins emphasized that the approval applies only to the specified exchange traded contracts and does not restrict CFTC oversight of differently structured products. He noted that the application of these rules provides core investor protections under federal securities laws. The SEC's decision concerns the listing and trading of specified contracts, but does not authorize every possible financial product tied to the same company indicators, as products designed to fall under CFTC jurisdiction remain outside the scope of this decision. Atkins said decades of jurisdictional disputes between the SEC and the CFTC had held back innovation, and the approval reflects a new approach centered on regulatory harmonization, innovation and broader investor choice.
