The Macro View: The Washington Yield War
If you are holding single-stock crypto ETFs like CONY, COYY, or MAAY, you aren't just betting on the price of Bitcoin. You are betting on a turf war happening right now in Washington D.C.
The current battleground is the CLARITY Act. This bill is currently gridlocked in Congress, and its goal is to shift oversight of most digital assets from the SEC (which loves to sue) to the CFTC (which prefers to regulate markets).
The real war isn't just SEC vs. CFTC. The real war is traditional banks vs. the crypto economy over who gets to keep billions of dollars in risk-free interest. And to see how we got to this hostage situation, we need to rewind the clock to last summer and look at a law that already passed: the GENIUS Act.
The Backstory: Why the GENIUS Act ‘IS’ genius (and Terrifying to Banks)
The Genuis act forces stablecoin issuers to buy US treasuries usd:usdc 1:1
Last July, Congress passed the GENIUS Act to regulate stablecoins. On the surface, it sounded like an absolute snooze-fest: it basically mandated that for every digital dollar (like USDC) a company creates, they must hold an actual, ultra-safe U.S. Treasury bill to back it 1:1. No funny business, no risky lending.
Sounds like a big "so what," right? Wrong. That boring rule accidentally set off a massive turf war. Here is the magic trick that changes everything for us as investors:
Uncle Sam Gets a New Best Friend: The GENIUS Act essentially weaponizes crypto to protect the U.S. Dollar. By forcing stablecoin issuers to buy U.S. Treasuries, the government just created a permanent, massive, and automated mega-buyer for its own debt. Uncle Sam's wallet is perfectly safe.
The Massive Interest Grab: Those U.S. Treasuries pay out roughly 5% interest. Right now, stablecoin issuers like the newly public Circle ($CRCL) and Coinbase ($COIN) get to sit back, take almost zero risk, and pocket that interest on billions of dollars. As stablecoin adoption explodes toward a multi-trillion-dollar asset class, their valuations are primed to go to the moon.
The Traditional Bank Freakout: Here is where it gets spicy. Traditional banks make money by taking your deposits, lending them out for risky mortgages and 25% credit cards, and paying you a whopping 0.01% "participation trophy" in your savings account. They keep the massive spread. But regulated stablecoins take zero lending risk and have almost no overhead. They could easily pass that juicy 5% Treasury yield straight to you.
The Hostage Situation (Enter the CLARITY Act): Banks are absolutely terrified. They know that if you can earn a risk-free 5% yield just by holding digital dollars in your phone wallet, you'll yank your cash out of their savings accounts so fast it'll make their heads spin. So, bank lobbyists have swooped into Washington and are currently holding the new crypto bill (the CLARITY Act) hostage. They are demanding Congress make it illegal for stablecoins to share that yield with you. They aren't trying to beat the competition; they are trying to outlaw it.The Fork in the Road: Two Outcomes for Your Portfolio
So, we have a massive structural tailwind from the GENIUS Act colliding with a political roadblock in the CLARITY Act. Here is how the next few months are likely to play out for your income funds.
Scenario A: The Bill Passes (Spring 2026)
A compromise is reached, and oversight shifts to the CFTC, ending the era of "regulation by enforcement."
The Underlying Movers: Coinbase ($COIN) sees trading volumes explode as legal uncertainty vanishes. Miners like Marathon Digital ($MARA) attract massive new institutional inflows.
The High-Yield ETF Play: This is the golden scenario. High-volatility income funds do their most legendary work when the underlying stock is ripping—just remember the fortunes MSTY and CONY minted during the last major run. A passing grade for CLARITY would trigger a violent upside move, allowing you to capture rich option premiums while your NAV appreciates.
Scenario B: Gridlock (No Passage in 2026)
Banking lobbyists win the standoff, and the bill stalls indefinitely.
The Underlying Movers: $COIN and $CRCL face valuation hits as capital flees to offshore jurisdictions with clearer rules.
The High-Yield ETF Play: Proceed with extreme caution. Volatility will spike, making the stated yields on funds like CONY and COYY look insanely attractive (100%+). Do not be fooled by the yield trap. If the underlying stock bleeds out slowly, your NAV erosion will outpace your monthly distribution check.
The Bull Case: Why We Are Still Leaning Into Crypto Yield
Some of you have asked: "With all this Washington uncertainty, why not just stick to boring covered call funds like $SPYI or $JEPQ?"
Here is the data-driven reality: Crypto is in a sustained, institutional-led period of early adoption. We aren't in 2022 anymore but we havent finished writing all the laws yet. Giants like Morgan Stanley have opened their doors to crypto products, and institutions are building long-term positions.
Goldman Sachs CEO David Solomon revealed on February 18, 2026, that he personally owns a "very, very limited" amount of Bitcoin. Sure thing David… “limited”.
This institutional bid creates a higher "floor" for assets like $COIN and $MSTR. For us as income investors, this is the premier hunting ground. The current bull market generates massive implied volatility (fat premiums for our ETFs), while the steady institutional buying helps protect our NAV from a catastrophic collapse in a rally.
The Great Crypto Yield Explosion (And How to Survive It)
We’ve defaulted to the obvious names like $COIN and $CRCL to explain the macro, but the actual landscape of crypto income ETFs has exploded into an absolute jungle.
If you want to capture 50-150% yields, you have to know exactly what you are holding. Here is how the battlefield breaks down right now:
The Pioneers: We have the classics from ProShares (BITO, EETH) and Grayscale (BPI, ETCO), alongside retail favorites like YieldMax’s CONY and MSTY.
The Clone Wars: MSTY was so successful it birthed an entire spin-off industry. If you want MicroStrategy yield, you now have to choose between MST, MSST, MSTW, MSII, MSTK, and MTYY.
The Leveraged Survivors: Defiance recently gutted their leveraged-income ETF lineup, leaving YBMN and MST as the sole survivors (read more about why they survived the slaughter in my previous article here).
The "Crypto Treasury" Premium: Why did those survive? Because Defiance and the market agree with Tom Lee’s thesis: companies operating as "crypto treasuries" (like MSTR and now the Ethereum-hoarding BMNR) will see massive valuation multiples when the rally begins.
The Stakers & Innovators: Rex Shares dropped their "staked" product line (ESK, SSK), while Amplify ETFs launched an original suite of appreciation + target income funds (keep an eye on ETTY, which is actually beating its underlying asset).
The Retail Darlings: Funds like CEPI, BLOX, and BAGY are gaining cult followings.
The Oddballs & Bears: VistaShares just launched BTYB, which somehow offers weekly income of 2x the 5yr treasury bond plus Bitcoin growth exposure. And if you think this is all going to zero? You have inverse products like FIAT and YieldMax’s WNTR.
The Game Plan: Our work as retail investors is officially cut out for us. It is physically impossible to track the NAV decay, distribution rates, and underlying assets of all these funds on a legal pad. Focus your core growth on issuers like $CRCL and $COIN, but when hunting for yield, use the data.
Speaking of data... I ran every single one of the funds listed above through the Master Database to see who is actually producing has performed the best over the last 6 months and of course. You'll never guess who won. It was our old, contrarian pal WNTR from your favorite drunk uncle, YieldMax.
We as retail traders have to keep tabs on the invesre funds. they can be a tool to us if we decide to actively manage our portfolios we can introduce them at strategic times as a hedge or when we see the market changing.
An honorable mention must be given to Nicholas Funds BLOX during this bear crypto cycle. @DavidANicholas actively manages this fund and posts regularly about it on x citing rolling hedges and mitigating downside exposure which gives us retail investors confidence in the fund.
Want to analyze these funds yourself? Visit [RetailInvestorReport.com] to access the High Yield Terminal and compare every yield in the game.
Turning Washington Chaos into Leveraged Profits
The macro analysis above gives us the "why," but the real money is made in the "how." How do we translate Washington’s volatility into high-leverage profits right now?
Below, I’m pulling back the curtain on two active, leveraged trades I entered this week. These aren't passive income holds; they are aggressive swing trades designed to maximize this specific moment in the crypto cycle using 2x leverage.
Specifically, I’m breaking down a 2x leveraged play on Coinbase ($CONL) and a targeted technical trade on a crypto miner ($CIFR) that is currently lagging the sector but coiled for a massive catch-up move.
Upgrade below to see my exact buy zones, technical rationale, upside targets, and stop-loss levels.
The Alpha Section: My Two Active Leveraged Trades
My strategy is simple but disciplined:
I use the macro environment (like the GENIUS/CLARITY acts) to identify the right sectors.
I use technical analysis to find the exact entry.
Then, I use my experience with leveraged ETFs to amplify the results.
Here is how I am applying that right now to two aggressive setups.
Trade #1: The Macro Hammer ($CONL - 2x Coinbase)
As discussed in the free section, Coinbase is one of the primary beneficiaries of the current stablecoin environment. While I hold the underlying stock for the long term, the current Washington volatility presents an opportunity for short-term maximization.
I have entered $CONL, the 2x leveraged ETF for Coinbase, to swing trade news emanating from the CLARITY Act debates.
COIN is in a buyzone. Trading CONL (2x of COIN)
Coinbase is in a clear BUYZONE. An anchor point was formed in early Febreaury but the subsequent breakout failed. Another anchor point last week formed and momentum has carreid price through to the BUYZONE. The targets are plotted at points where I plan on taking profits and leaving some shares to ride to get to the next target.
Because leveraged ETF’s crash fast on a downtrend - it is likely I will enter and exit this trade multiple times over the coming months. A return to all time highs is a whopping 320% in CONL but with daily resets and constant volatility I will likely enter and exit the trade multiple times before we reach All Time Highs again.
Trade #2: The Technical Catch-Up Play ($CIFR)
For the next trade I have chosed a more specualtive trade. The setup is not as juicy but its a Crypto Miner and the chart is different than Bitcoin + Coinbase so thats why i chose to feature it. The stock is Cipher Mining ($CIFR) which has recently been given coverage status by JPMorgan—a significant bullish signal for institutional legitimacy.
However, unlike Bitcoin and other crypto related assets $CIFR hasnt completely tanked in recent weeks which along wtih JP Morgans coverage makes me think they know something we dont. During the dip of recent months $CIFR has been consolidating.
The Buy Zone & Price Memory: I entered this trade last Monday. You can see my buys on the chart. The current buy zone followed a "low anchor point"—price dropped to a previous low, and because price has memory, it found support there. That anchor point serves as our theoretical temporary bottom and could also serve as our stop loss level.
Coiled Momentum: When I entered; momentum indicators like the TSI and MACD were neutral—they weren't giving us clear direction. When price consolidates like this, it's anyone's game. It means the spring is coiled. This trade could ignite based on news from Washington, or it might break out purely on technicals.
Possible Breakdown: As the week went on price has lost momentum. You can see it creeping towards my stop loss. Price is still in a sideways trajectory though its not looking good. I am giving it till Monday to make a decision. If we open RED I will likely close out the trade for a loss.
The Execution Discipline: Trading with Leverage
Let’s be real: no one truly knows what the market will do next. That is why discipline is everything.
For both the $CONL and $CIFR trades, I chose the 2x leverage versions to maximize profit potential on these moves. This comes with responsibility. Leveraged trades are not "set and forget." They require active monitoring pre-market and throughout the day.
I have entered these trades with clear intentions: My upside targets are plotted out, and my stop losses are set to protect capital if the technical structure breaks down. Track this trade with me in real-time over the coming weeks.
Want to analyze these funds yourself? Visit RetailInvestorReport.com to access the High Yield Terminal and master dividend investing today!
Disclaimer: This newsletter is for informational purposes only and does not constitute financial, legal, or tax advice. Investing in high-yield and volatility ETFs involves severe risk of loss. By reading this, you agree to our [Full Legal Disclaimer & Terms of Use].