The former reflects classical liberalism, which is the belief that the government should get involved when fraud or aggression has occurred, and deter crime thr

The former reflects classical liberalism, which is the belief that the government should get involved when fraud or aggression has occurred, and deter crime through deterrence. The current regulatory system reflects the belief that government ought to preempt crime by creating centralized gatekeepers that impose blanket bans on entire categories of voluntary exchange (e.g. securities issuance), that are only lifted on a case-by-case basis if one is approved/registered by/with that gatekeeper.