Yes they are. They are blaming the recent market demise partly on over leveraged hedge funds. The hedge fund industry will never be the same after the Reg's get finished with it. I'm willing to bet they will remove the investor exemption that currently exists (i.e. - each fund can take up to 35 non-accredited investors) and raise the minimum investment from $25k to....well, something a lot higher than $25k. The last time the market tumbled they blamed it on day traders and came up with the PDT Rule. Who knows what they will do to fix the "hedge fund problem."