The man page (https://users.cs.duke.edu/~raw/cps218/Handouts/spim.html) doesn't mention any breakpoint options. It just simulates, and isn't a debugger. Unless the CLI you're using has more options (maybe try
spim --help or
man spim), it looks like you'll have to use the GUI to get a debugger.
Your first sentence is asking passing args to the program being simulated, rather than to the simulator. That's a completely different thing.
You do that with
spin -file foo.s arg1 arg2, like you're already doing.