> How would regulation fix this? Two ways I'm aware of: 1) Require documentation ahead of time that will make prosecution harder after the fact. Without docum

> How would regulation fix this? Two ways I'm aware of: 1) Require documentation ahead of time that will make prosecution harder after the fact. Without documentation scammers can just say "oops, we lost our client database" or "oops, we never recorded a document for that investor". You can still commit fraud while submitting heavy documentation, but it gets harder not to paint yourself into a lie. 2) Firewalls between parts of an ecosystem. Maybe it's problematic for and exchange to trade a security it itself issued. You make that illegal, and then colluding entities need to communicate across corporate boundaries, which is harder to keep hidden. I sort of agree with you that this runs counter to decentralization. But the decentralization community has yet to implement voluntary versions of these things. Where's the crypto SEC that I can opt into which maintains strict reporting and audit requirements tied to the issuer's financial stake? Until we have credible versions of that I don't see how we can say we don't need the SEC.