SEC Puts the Brakes on High-Octane Crypto ETFs

[bonk]

The U.S. SEC has issued warning letters to major ETF providers—including Direxion, ProShares, and Tidal—ordering them to halt applications for products offering more than 200% leveraged exposure.
The agency cited the Investment Company Act of 1940, which limits funds to a 200% value-at-risk cap. Issuers must now scale back leverage before applications can move forward.
The unusually fast publication of these letters suggests regulators want the public fully aware: extreme leverage is officially under the microscope.

[JanEmil]

40x-100x are for real gamblers

[Nahid Hossen]

SEC slowing down leveraged ETFs shows rising regulatory caution.