SEC Approves Binary Options for Crypto-Linked Companies
- The SEC approved binary options tied to key performance indicators of 23 U.S. publicly traded companies.
- Metrics include trading volume at Coinbase, customer count and revenue at Robinhood, and bitcoin production at MARA Holdings.
- Traders can now bet on whether Coinbase’s trading volume will exceed a set number by a specific date.
- This approval provides a new way to trade crypto-linked company performance beyond betting directly on BTC prices.
- Eleanor Terrett noted that this structure leaves room for differently structured contracts under CFTC jurisdiction.
The SEC’s decision to approve binary options linked to the performance of major companies like Coinbase and Robinhood marks a significant development in how traders engage with the cryptocurrency market. This new trading method allows for speculation based on company metrics rather than solely on cryptocurrency prices.
With Bitcoin currently fluctuating around $82,701, this approval offers an alternative avenue for traders interested in the performance of crypto-related businesses.(Source)
