SEC approves binary options tied to Coinbase volume and Bitcoin mining output

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. Summary The SEC has approved binary options tied to corporate performance metrics, including Coinbase trading volume, MARA Bitcoin production and Robinhood financial data. The contracts will settle in cash at expiration and remain subject to existing securities exchange rules covering margin requirements, trading halts and market makers. Investors can take positions on whether specified company performance targets will be met, with fixed payouts determined by the terms of each contract. SEC Chairman Paul Atkins said the approval applies only to the specified exchange traded contracts and does not restrict CFTC oversight of differently structured products. In an October 13 statement, SEC Chairman Paul Atkins said the Commission had voted to approve a securities exchange rule change covering standardized options linked to key performance indicators reported by publicly traded companies. The contracts allow traders to take positio...