SEC Blocks High-Leverage Crypto ETFs as Regulation Raises Concerns

The Securities and Exchange Commission (SEC) has imposed a significant roadblock on high-leveraged cryptocurrency exchange traded funds (ETFs). A new regulatory letter, alongside industry commentary, reveals a major clash between ETF issuers and the SEC’s Crypto ETF Rule. The rule caps leverage at 2x for crypto ETFs. This decision sparked strong reactions across the digital currency trading world, particularly among traders anticipating more aggressive products.