[US SEC Issues Warning Letters to ETF Issuers Targeting High-Leverage Products] BlockBeats News, December 4, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has issued warning letters to several exchange-traded fund (ETF) providers, halting applications for ETFs with leverage exceeding 200%. ETF issuers Direxion, ProShares, and Tidal have received letters from the SEC, citing relevant legal provisions under the Investment Company Act of 1940. This law sets a cap on the risk exposure of investment funds, limiting it to no more than 200% of the value risk of their 'reference portfolio' (composed of unleveraged underlying assets or benchmark indices).