SEC Suspends ETF Applications Exceeding 200% Leverage Limit
The U.S. Securities and Exchange Commission has suspended applications for exchange-traded funds with leverage exceeding 200%, sending warning letters to multiple providers, Cointelegraph reported on Dec. 4. ETF issuers Direxion, ProShares, and Tidal received letters citing provisions under the Investment Company Act of 1940, which caps investment funds' risk exposure at no more than 200% of the value-at-risk of their unleveraged reference portfolio or benchmark indices.