The U.S. Securities and Exchange Commission (SEC) has temporarily stalled the approval process for exchange-traded funds (ETFs) featuring over 200% leveraged exposure across volatile assets. The regulator cited concerns about investor protection and systemic risk associated with these products. Following an initial request from the SEC, fund issuers have been given two options: either withdraw their ETF applications or adjust their strategies to align with established risk limits. This pause on approvals comes at a time when high-risk leveraged ETFs have experienced significant growth, surpassing $162 billion in assets under management. The SEC’s action marks a rare instance of intervention within the usually active ETF approval environment.