Bloomberg Crypto

The SEC’s Leveraged ETF Freeze Ahead of the Looming Crypto Flood

Against the backdrop of a more accommodating regulatory tone from the Trump administration, the SEC is raising concern over increasingly aggressive fund structures.
Paul Atkins, chairman of the US Securities and Exchange Commission.Photographer: Michael Nagle/Bloomberg
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Sid Verma writes about the SEC’s concern over increasingly aggressive fund structures.

The SEC made a rare group call this week to tell leveraged-ETF issuers to stand down — don’t bring your 5X funds to the market anytime soon. It’s a striking intervention from an agency that has spent the past year waving through an extraordinary expansion of what retail investors can access through the ETF wrapper.