The U.S. Securities and Exchange Commission has authorized a new class of binary options that reference performance indicators of publicly listed firms active in the crypto sector. The move creates a direct way for traders to bet on company-specific outcomes rather than on the price of digital assets themselves.
Scope of the approval
The rule change covers 23 U.S. companies, among them Coinbase Global, Robinhood Markets and Marathon Digital Holdings. For Coinbase, the contract will reference the exchange’s trading volume; Robinhood’s options will hinge on its customer count and revenue; Marathon’s will be tied to the amount of bitcoin the miner produces. By linking contracts to these key performance indicators, the SEC is expanding the range of securities that can be offered to investors.
Mechanics of the contracts
Each binary option functions as a simple yes-or-no wager. The contracts are cash-settled, European-style instruments, meaning they can only be exercised at the predetermined expiration date. Settlement will be based on figures reported in the companies’ official SEC filings, not on numbers presented during earnings calls. This design ensures that the payout is anchored to audited data.
Expected rollout
Cboe Global Markets filed the rule change, which SEC Chair Paul Atkins approved in a statement dated Oct. 13. Cboe intends to list the contracts later this month, and Robinhood is expected to be the first brokerage to make them available to retail clients. Trading cannot commence until Cboe Clear U.S., the designated clearing house, receives provisional registration; a separate application for that status is still pending.
Regulatory boundaries
Atkins emphasized that the decision does not affect similar products overseen by the Commodity Futures Trading Commission. He noted that contracts on platforms such as Kalshi remain under CFTC jurisdiction, and that the approval reflects a shift toward greater inter-agency cooperation after years of turf disputes.
Market backdrop
The announcement arrives as Bitcoin has been hovering near $81,600, holding above its 50-day simple moving-average support level. Analysts see the price stability as a sign of resilience, which could boost interest in alternative ways to gain exposure to the crypto ecosystem.
Why it matters
By linking binary options to concrete operational metrics of crypto-related companies, the SEC is offering investors a novel tool that blends traditional securities with the emerging digital-asset space. The product could attract participants who want crypto exposure without owning the underlying assets, while also expanding the regulatory framework that governs innovative financial instruments.
