Crypto News: U.S SEC Makes Sweeping Move Against Leverage

Crypto News: U.S SEC Makes Sweeping Move Against Leverage
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In crypto news, SEC cracks down on heavily-leveraged ETF providers in a move that could stop 3X and above leverage.
From volatility to liquidation: A recap of how extreme leverage recently impacted the market.
Here’s what the SEC’s leverage crackdown means for the market

The U.S Securities and Exchange Commission (SEC) has reportedly made a critical change to the crypto rules, according to a recent news update.
The regulatory watchdog is cracking down on leverage, in a move that may counter heavy volatility and price manipulation in the crypto market.
According to the latest crypto news, the SEC recently served ETF providers with warning letters over the issuance of extreme leverage.
In other words, crypto ETFs will no longer be allowed to offer more than 200% or 2X leverage.

Source: X courtesy of The Kobeissi Letter

The official statement over the decision revealed that the SEC responded with the crypto rules change due to the rising number of applica

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