You can already trade cryptocurrencies with leverage on many major crypto exchanges.

Correct. All of the big unlicensed and unregulated exchanges that provide no transparency of their ownership, or as to how customer balances are held allow significant margin trading. And they have no impartial 3rd party proof of reserves.

Many major exchanges have financial institution licenses. It's not a banking license, but it's a license that still means a lot of regulation. (Also the history has shown that a banking license is in no way a guarantee that a bank cannot fail.)

It's like speculation on top of speculation. Reminds me of the MBS/CDOs of the housing crisis. Speculative loans of speculative loans.

> All we need now is someone adding leverage and hilarity shall most certainly ensue

Oh, it's already starting. Believe me.

Usually when you start hearing of "record setting" purchase of art, you start your clock on the next recession. I guess this could be that moment. Wouldn't be surprised if we have a recession in the next 2 or 3 years.