Today in crypto: Ethereum’s Fusaka upgrade went live, the SEC warned asset managers over leveraged ETFs and Binance named co-founder Yi He as co-CEO.

Fusaka goes live on Ethereum mainnet

Ethereum’s second major upgrade of the year, Fusaka, went live on the Ethereum mainnet at 9:49 pm UTC on Wednesday, bringing forward supercharged data capacity, reduced transaction costs and enhanced usability. 

The Ethereum Foundation said earlier in the week that Fusaka brings Ethereum a step closer to providing “near-instant transactions,” with the increased speed resulting in a more seamless user experience.

The upgrade will also “unlock up to 8x data throughput” for layer 2s and rollups with lower fees, as nodes now download and upload less data, enabling them to process information faster, and allowing L2s to interact with the Ethereum mainnet more efficiently.

Ether (ETH) rose 3.5% on the day, slightly cooling from a top of over $3,200, with many analysts expecting further upside for the token due to the host of under-the-hood enhancements Fusaka will provide.

SEC sends warning letters to ETF issuers targeting untamed leverage

The US Securities and Exchange Commission (SEC) sent warning letters to several exchange-traded fund (ETF) providers, halting applications for leveraged ETFs that offer more than 200% exposure to the underlying asset.

ETF issuers Direxion, ProShares, and Tidal received letters from the SEC citing legal provisions under the Investment Company Act of 1940.

The law caps exposure of investment funds at 200% of their value-at-risk, defined by a “reference portfolio” of unleveraged, underlying assets or benchmark indexes. The SEC said:

“The fund’s designated reference portfolio provides the unleveraged baseline against which to compare the fund’s leveraged portfolio for purposes of identifying the fund’s leverage risk under the rule.”

The SEC directed issuers to reduce the amount of leverage in accordance with the existing regulations before the applications would be considered, putting a damper on 3-5x crypto leveraged ETFs in the US.

SEC regulators posted the warning letters the same day they were sent to the issuer, in an “unusually speedy move” that signals officials are keen on communicating their concerns about leveraged products to the investing public, according to Bloomberg.

The crypto market took a nosedive in October after a flash crash caused $20 billion in leveraged liquidations, the most severe single-day liquidation event in crypto history, sparking discussions among analysts and investors over the dangers of leverage and its effect on the crypto market.

Binance names co-founder Yi He co-CEO alongside Richard Teng

Binance appointed co-founder Yi He as co-CEO, elevating one of its earliest architects to a formal leadership role alongside chief executive Richard Teng.

In a Wednesday announcement on stage at Binance Blockchain Week, Teng said co-founder Yi He had been appointed co-CEO. Teng said He “has been an integral part of the executive leadership team since the launch of Binance,” calling the appointment “a natural progression.”

Teng added that He, Binance’s chief marketing officer before her appointment as co-CEO, is crucial in expanding Binance’s community and driving product innovation. Yi He said that sharing the CEO role with Teng will leverage two very different perspectives, with Teng bringing his experience in regulated financial markets.

Yi He is a crypto native who co-founded Binance in 2017 alongside Changpeng “CZ” Zhao.

Cryptocurrency Exchange, Binance, Digital Currency Exchange, Companies
Yi He’s appointment announcement image. Source: Binance