Inverse funds are one of a limited options to protect portfolios, also leveraged products can be a good option for short term investing.

I am a retail investor and use leverage ETF selectively to make to increase the beta of my portfolio when I have conviction on market direction. I understand the risk and rewards.
The risk of an investment in ARKK or BITCOIN or China is far greater than a 2X S&P 500. Should these also be regulated?
Every time I purchase a leverage product a disclosure pops up of the potential risks. I think that is sufficient.

Although I understand to some degree the desire to prevent people from suffering considerable financial losses, I believe this is a wrong approach. Our representatives should not be using legislation to parent the general population as in the "nanny state". It is my choice to invest in riskier investments. At most, if a person interested in buying riskier investments such as leveraged E.T.F.'s, they could be required to read and agree to a statement saying that they understand that this investment is high risk and they could lose their entire investment.

I would prefer to make my own financial decisions instead of being guided by regulations. I understand that those decisions may be risky, and the risks are mine to bear. Thank you.

The proposed regulations are, quite frankly, stupid. Leverage is easy to understand, and while it carries risks, it would be exclusionary and harmful to prevent people from investing in a basic public security that happens to be leveraged. Such regulation is inconsistent with the risks and benefits I already accept as an adult. There is not regulation to prevent me from spending $20,000 of my own money on a car or a boat that will surely depreciate, so why am I treated like a child when it comes to investing?

Hands off my crypto don't touch it I tell you let us get what I think is our right to get not yours so we can do end buy what we want so hands off

It is my right to be able to choose the public investments. Public investments should be available to all of the public, not just the privileged. I shouldn't have to go through any special process before I can invest in public securities, like leveraged and inverse funds. I was a licensed stockbroker for 30 years, and I have found that most people are capable of understanding leveraged and inverse funds and their risks. The CFPB and other regulators do not need to impose additional measures on the brokers or on me.