Unfortunately, there’s no shortage of obscure public investments where people can lose lots of money. Options are a classic example. Leveraged ETFs are another.

Unfortunately, there’s no shortage of obscure public investments where people can lose lots of money. Options are a classic example. Leveraged ETFs are another. There are many more. The idea that the SEC should limit access to hedge funds, private equity, and startups is antiquated. A modern approach could simply put the burden on the entity seeking investments. Access to investors with net worth less than $100k could simply require extensive disclosure. Many people would lose money investing in things they know nothing about but this would not be meaningfully different from our current situation.