SEC Blocks Leveraged Crypto ETFs, Limits Leverage at 200%

The US Securities and Exchange Commission (SEC) has issued a significant move in regulating cryptocurrencies, blocking the launch of leveraged exchange-traded funds (ETFs). The SEC cited Rule 18f-4, which imposes a strict 200% leverage cap on volatile assets like Bitcoin, Solana, and others. This action effectively halts the development of ETFs with magnified returns, including those offering 3x and 5x leverage from ProShares, Direxion, and GraniteShares.