New SEC Approval Lets Traders Bet Yes Or No On Coinbase Volume, Marathon BTC Output And Robinhood Metrics
In Brief
The SEC approved Cboe-listed binary options on corporate KPIs from Coinbase, Robinhood and Marathon, creating a new way to trade crypto-linked performance.
The U.S. Securities and Exchange Commission has approved a rule change allowing Cboe to list binary options tied to key performance indicators (KPIs) reported by publicly traded companies, with Coinbase, Robinhood, and Marathon Digital among the first issuers whose metrics will underlie the contracts. The decision marks the first time investors will be able to take yes-or-no positions on operational metrics of individual companies through a standardized, exchange-traded options product.
The contracts function as cash-settled, European-style binary options, meaning traders speculate on whether a given KPI will meet a predefined threshold by expiration rather than taking a directional position on the underlying stock or asset. Underlying variables include Coinbase’s trading volume, Marathon’s Bitcoin production figures, and Robinhood’s customer and revenue metrics.
The products will trade on a securities exchange as NMS securities, subject to the full framework of existing investor protections — including exchange rules on customer accounts, margin requirements, trading halts, auction mechanisms, and market-maker obligations — and will operate in a substantially similar manner to standardized options already available to investors. Robinhood is expected to become the first retail broker to offer the new contracts to its user base.
A New Chapter in SEC–CFTC Coordination
For the crypto sector, the approval creates a novel mechanism for expressing views on crypto-linked company performance without directly betting on Bitcoin’s price. Investors can now isolate and trade specific operational drivers — exchange volumes, mining output, user growth — that were previously accessible only through equity analysis or opaque prediction markets. This granular exposure may appeal to both retail participants and institutional traders seeking hedging instruments tied to the crypto industry’s operational health rather than token spot prices.
SEC Chairman Paul Atkins characterized the decision as reflecting what he described in his statement as a new spirit of harmonization, innovation, and investor choice, explicitly framing it as an effort to remove unnecessary obstacles to the lawful introduction of novel financial instruments. Notably, the approval order is deliberately narrow in scope: it addresses only these specific securities-options structures and does not foreclose Commodity Futures Trading Commission jurisdiction over similarly derived KPI contracts structured differently.
Atkins acknowledged that decades of jurisdictional friction between the two agencies have stifled innovation and left unrealized financial products in their wake, suggesting the order may serve as a template for cross-agency coordination on hybrid derivatives. Whether the CFTC follows with a complementary framework for KPI-based contracts under its own authority will determine how comprehensive this new asset class ultimately becomes.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
