Since inverse funds are obviously for hedging, limiting their use would make investing much riskier and more precarious for retail investors. I was able to avoid utter ruin during several market crashes by having leveraged inverse ETFs in my accounts as hedges. This is the only viable way to sufficiently hedge your portfolio if you are a retail investor.
Robert Racine Comment On Regulatory Notice 22-08
Since inverse funds are obviously for hedging, limiting their use would make investing much riskier and more precarious for retail investors. I was able to avoid utter ruin during several market crashes by having leveraged inverse ETFs in my accounts as hedges. This is the only viable way to sufficiently hedge your portfolio if you are a retail investor.