March 13, 2020
My feeling is that the SEC wants to shut down leveraged and inverse funds by imposing excessively tight restrictions on who can use them. It would be very difficult for brokerage firms to accurately predict who can use these instruments responsibly, therefore the firms would likely cut off all ties to such products rather than risk the resulting law suits, and that's exactly what the SEC wants to happen.
I don't believe there is any need for "nanny state" supervision in this area. The vast majority of investors are already fully aware of the risks associated with LI funds. It's unfair to deprive them of these valuable investment tools just because a few people have gone overboard with them and lost money and are complaining about it.