The U.S. Securities and Exchange Commission (SEC) has suspended the approval process for highly leveraged exchange-traded funds (ETFs), citing concerns about excessive risk exposure. On December 3, the SEC issued warning letters to major ETF providers, including Direxion, ProShares, and Tidal, effectively pausing the launch of products designed to offer two or three times the daily return on stocks and commodities. The regulator's primary concern is that these funds may exceed the SEC's risk limits relative to their assets. The SEC's letters demand that fund managers either adjust their investment strategies to align with regulatory standards or formally withdraw their applications. This move underscores the SEC's commitment to maintaining market stability and protecting investors from potentially high-risk financial products.