The U.S. Securities and Exchange Commission (SEC) has approved binary options linked to corporate performance indicators, allowing investors to trade contracts based on data disclosed by companies, such as the trading volume of Coinbase and the bitcoin production of bitcoin mining companies.

• SEC has approved binary options linked to corporate performance indicators, including Coinbase trading volume, MARA Bitcoin production, and Robinhood financial data.
• These contracts will be settled in cash upon expiration and will continue to be subject to the existing rules of the stock exchanges, including margin requirements, suspension mechanisms, and market maker regulations.
• Investors can place bets on whether specific company performance targets will be achieved, with the fixed payout amounts predetermined by the terms of each contract.
• Chairman Paul Atkins stated that this approval only applies to specific exchange-traded contracts and does not limit the regulation of different structured products by the Commodity Futures Trading Commission (CFTC).

Chairman Paul Atkins stated in a statement on October 13 that the committee has voted to approve a change to the securities exchange rules, which covers standardized options linked to key performance indicators (KPIs) disclosed by listed companies.

These contracts allow traders to take positions on whether a specific financial or operational goal is achieved. Each binary option pays a predetermined amount when conditions are met, and is settled in cash at expiration.

The companies covered by this proposal include Coinbase, Robinhood, and the Bitcoin mining company MARA. This means that several companies in the crypto industry will become entities whose performance disclosures can serve as references for such contracts.

SEC approval covers Coinbase trading volume and mining metrics

The performance indicators that can be used as targets for Coinbase include total trading volume, trading revenue, total income, subscription and service revenue, as well as diluted earnings per share.

Investors can utilize these new contracts to trade on whether the data disclosed by the exchange during a certain reporting period is above or below a specific threshold.

For the Bitcoin mining company MARA, relevant indicators include Bitcoin production, which allows contracts to refer to operational results rather than the market price of Bitcoin itself.

The customer activity and revenue data of Robinhood also serve as performance metrics that can be used for similar contracts.

Unlike ordinary stock options, whose value is typically derived from the price of the underlying security, the binary options approved this time are based on operational indicators disclosed by the company.

For example, a contract linked to the Coinbase quarterly trading volume will depend on whether the data disclosed by the company meets the conditions stipulated in the contract.

The exchange will determine the relevant thresholds and contract terms under its approved listing rules. If the conditions are met, traders will receive a fixed compensation; if the conditions are not met, no compensation will be paid upon contract expiration.

According to the approved structure, these options are European options, which means they can only be exercised at expiration.

These products are classified as national market system securities ( National Market System securities ) and will be traded on regulated stock exchanges in accordance with standardized options rules.

Binary KPI options are still subject to securities protection regulations.

The approval for SEC requires that these new products operate within the framework of existing stock exchanges.

Atkins stated that the listing and trading methods of these contracts will be basically consistent with the existing traditional standardized options on stock exchanges.

The exchange rules applicable to customer accounts and margin requirements will also apply to these products, as well as the procedures involving trading halts and bidding mechanisms.

Market makers will comply with the exchange's requirements regarding designated qualifications and quoting obligations, while orders will be subject to the existing rules for order types, execution instructions, and validity period conditions.

Atkins stated that the application of these rules provides core investor protection under the federal securities laws.

This regulatory approach means that these contracts will not become tools for unrestricted betting on a company's performance. Instead, they will be subject to the rules already approved by the exchange, as well as the securities regulations applicable to their structure.

SEC This decision pertains to the listing and trading of specific contracts, and it does not imply that all financial products linked to the same company's indicators have been authorized.

SEC decides not to change CFTC's permissions for other contracts

Although SEC has approved specific KPI options, the institution has not made a ruling regarding contracts that use the same performance indicators but have different legal structures.

Atkins stated that this approval order only applies to specific standardized options traded on exchanges that comply with federal securities laws.

Products designed to fall under the jurisdiction of CFTC are still not covered by this decision.

As previously reported by crypto.news, in February of this year, Atkins raised certain regulatory issues concerning SEC that affect the market during a hearing before the Senate Banking Committee.

At that hearing, he described the prediction market as an area where there may be overlapping jurisdiction between two federal regulatory agencies, and stated that the legal nature of a single product could depend on its contract structure.

The issue of regulatory boundaries became the topic of joint public consultation between SEC and CFTC in June. At that time, the two institutions sought public feedback on the definitions of swaps, securities-based swaps, and related derivatives.

This consultation reviewed existing exemptions, products that may be regulated by two institutions simultaneously, as well as issues related to regulatory compliance.

More recently, on September 28th, CFTC submitted two proposed market rules to the White House for review.

One of the proposals will include event contracts in the definition of swaps, while another temporary final rule will exclude casino-style gambling products.

In a statement on October 13, Atkins mentioned past disagreements between the two institutions regarding jurisdiction, stating that these disputes had hindered certain financial products from entering the U.S. market.

He described SEC's latest approval as part of a new path based on regulatory cooperation and investor choice.

Coinbase and MARA financial results provide reference points

The corporate performance data covered by the approved contracts is already disclosed through the company's financial and operational reports.

Coinbase reports that in the second quarter of 2026, the net loss was $359.5 million, with total revenue declining by 18.5% to $1.22 billion year-on-year.

Despite declining revenue, according to its financial report dated July 31, the exchange's share of global crypto transactions reached 10.3%, up from 9.1% in the previous quarter.

These data show the types of corporate disclosure information that can be referenced for the KPI contract. However, the approval for SEC did not set specific transaction thresholds based on these results.

The operational data of MARA provides another set of quantifiable indicators.

In its second-quarter financial report released on August 6, this Bitcoin mining company reported producing 2,422 BTC, a year-on-year increase of 3%.

The company recorded revenue of $174.9 million and a net loss of $611.3 million for the quarter. As of the end of June, its Bitcoin holdings amounted to 35,577 BTC, a year-on-year decrease of 29%.

MARA also reported that during the same period, its computing power in operation was 70.3 EH /s, and it sold 2,213 BTC.

The approved options framework allows exchanges to develop contracts that refer to specific disclosed indicators, provided that they comply with the terms and conditions permitted by their rules.

Atkins stated that when relevant products are designed in accordance with the structure of the Commodity Law, the directives of SEC do not prevent CFTC from exercising its regulatory authority over contracts linked to the data of the same enterprise.