There isn't any great mystery here: it's regulatory capture. It's a well understood public choice problem: https://en.wikipedia.org/wiki/Regulatory_capture ht

There isn't any great mystery here: it's regulatory capture. It's a well understood public choice problem: https://en.wikipedia.org/wiki/Regulatory_capture https://en.wikipedia.org/wiki/Regulatory_capture https://en.wikipedia.org/wiki/Public_choice https://en.wikipedia.org/wiki/Public_choice What's interesting to me is that quite smart people would expect the SEC to act otherwise.