The U.S. Securities and Exchange Commission has approved the Chicago Board Options Exchange, or Cboe, to list binary options linked to key performance indicators at publicly traded companies, with Coinbase, Robinhood and Marathon Digital Holdings (MARA) included in the first batch. These contracts let traders make yes-or-no directional bets on company-specific metrics rather than only on share prices or the price of Bitcoin. The underlying data points cited in the approval include Coinbase trading volume, Marathon’s Bitcoin production, and Robinhood’s customer and revenue figures. Robinhood is expected to become the first brokerage firm to offer the products to retail clients. Former SEC Commissioner Paul S. Atkins said the move reflects a “new spirit of coordination, innovation and investor choice.” Eleanor Terrett said on X that, for the crypto sector, the structure opens another way to trade the performance of crypto-linked companies beyond taking a direct view on Bitcoin’s price. The SEC approved this particular securities options structure while leaving room for other contract designs that could fall under the jurisdiction of the Commodity Futures Trading Commission.
The U.S. Securities and Exchange Commission has approved the Chicago Board Options Exchange (Cboe) to list binary options tied to key performance indicators, or KPIs, at publicly traded companies. The first group of underlying names includes Coinbase, Robinhood and Marathon Digital Holdings (MARA).
The contracts allow traders to place yes-or-no directional bets on specific company metrics. The examples cited include Coinbase trading volume, Marathon’s Bitcoin production, and Robinhood’s customer and revenue data.
Robinhood is expected to be the first brokerage to offer these products to retail customers.
Former SEC Commissioner Paul S. Atkins said the move reflects a “new spirit of coordination, innovation and investor choice.”
Eleanor Terrett wrote on X that, for the crypto industry, the approval creates a new way to trade the performance of crypto-related companies beyond taking a direct bet on the price of Bitcoin.
The SEC approved this specific securities options structure, while leaving room for other contract formats that could potentially fall under the jurisdiction of the U.S. Commodity Futures Trading Commission, or CFTC.
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