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The SEC is one of the US's best institutions. It was created in 1933/34 as a reaction to investment/banking scams that led to the Great Depression. The Securi

The SEC is one of the US's best institutions. It was created in 1933/34 as a reaction to investment/banking scams that led to the Great Depression. The Securities Exchange Act of 1934 [1] IS the best thing that ever happened to US markets being trustworthy, looking out for smaller investors and the meteoric rise of our markets since 1934. Yes it is a layer or wall for innovation at times, and have failed to catch all fraud/scams at times, but overall people should be glad the SEC is there to make sure people aren't being taken left and right on investments. The only people that are usually dealt a blow from the SEC are scammers/sketchy investments. Even if some financial innovation is delayed or harder it is always better to be trustworthy than not. The SEC makes US investments trustworthy. [1] https://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1934 https://en.wikipedia.org/wiki/Securities_Exchange_Act_of_193...

chickenfries 9y ago
Thank you. I really get the feeling that the people pleading a special case for ICOs are really lacking historical knowledge and perspective. They ask questions like "why can't the market decide what a trustworthy investment is" like we didn't already have a period where that was the case.
jMyles 9y ago
That an agency was necessary when it was created - and that it has done good in the intervening time - is not in itself a sufficiently compelling reason for it to continue to exist. In this particular case, I think it's clear that the SEC (as well as the FDA, to which it is being compared throughout this thread) will be decreasingly necessary as our species moves into the information age.
- drawkbox 9y ago
  The big question is: Would YOU put your wealth and life savings in an investment environment that isn't regulated by the SEC? All of it not just a portion that is risky? Everyone's retirement and wealth depends on a trustworthy market and securities. Why do you think people put money in the market today as opposed to holding cash during the Great Depression due to lack of trust in the markets and banks? Was the Great Recession not another warning that even robust banks might go too far with leveraged assets and thus investments would be even more sketchy? I think the SEC is needed more than ever today. However some financial regulations like SOX were a knee-jerk reaction that caused some issues, iteration and refinement is necessary. ICOs and cryptocurrency I invest in pretty heavily but I wouldn't trust my life savings there yet. It is more like cash/gold today that can be lost. SEC coming out and shutting down shady ICOs is a GOOD THING (tm). I attribute the fast turn around of the Great Depression largely to the SEC and market regulations that instilled trust. It was probably even a better reaction than the TARP after the Great Recession as that was a longer drawn out bounce back and still might not even be fully back. Trust was gone for quite a while and it may have even led to cryptocurrencies out of it (Bitcoin 2008/2009). The FDA has been bought and is regulatory capture in many ways but they still provide more good than bad at the current situation. I generally agree that the information age makes people more aware but there still should at least be oversight and regulation on areas where things get sketchy. If anything it will make the agencies better or they will evolve, they won't go away. Some agencies like the DEA have too much enforcement/regulation power and over time these will be ground down. But even the money in Wall Street still hasn't done that to the SEC because it is a great institution and was setup well, and all Americans have benefitted from it.

chickenfries 9y ago

Thank you. I really get the feeling that the people pleading a special case for ICOs are really lacking historical knowledge and perspective. They ask questions like "why can't the market decide what a trustworthy investment is" like we didn't already have a period where that was the case.

jMyles 9y ago

That an agency was necessary when it was created - and that it has done good in the intervening time - is not in itself a sufficiently compelling reason for it to continue to exist. In this particular case, I think it's clear that the SEC (as well as the FDA, to which it is being compared throughout this thread) will be decreasingly necessary as our species moves into the information age.

drawkbox 9y ago
The big question is: Would YOU put your wealth and life savings in an investment environment that isn't regulated by the SEC? All of it not just a portion that is risky? Everyone's retirement and wealth depends on a trustworthy market and securities. Why do you think people put money in the market today as opposed to holding cash during the Great Depression due to lack of trust in the markets and banks? Was the Great Recession not another warning that even robust banks might go too far with leveraged assets and thus investments would be even more sketchy? I think the SEC is needed more than ever today. However some financial regulations like SOX were a knee-jerk reaction that caused some issues, iteration and refinement is necessary. ICOs and cryptocurrency I invest in pretty heavily but I wouldn't trust my life savings there yet. It is more like cash/gold today that can be lost. SEC coming out and shutting down shady ICOs is a GOOD THING (tm). I attribute the fast turn around of the Great Depression largely to the SEC and market regulations that instilled trust. It was probably even a better reaction than the TARP after the Great Recession as that was a longer drawn out bounce back and still might not even be fully back. Trust was gone for quite a while and it may have even led to cryptocurrencies out of it (Bitcoin 2008/2009). The FDA has been bought and is regulatory capture in many ways but they still provide more good than bad at the current situation. I generally agree that the information age makes people more aware but there still should at least be oversight and regulation on areas where things get sketchy. If anything it will make the agencies better or they will evolve, they won't go away. Some agencies like the DEA have too much enforcement/regulation power and over time these will be ground down. But even the money in Wall Street still hasn't done that to the SEC because it is a great institution and was setup well, and all Americans have benefitted from it.