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The continuous pump-and-dump activity that you see in the crypto space is a clear demonstration that they should be regulated by the SEC. Regulation is unpopul

The continuous pump-and-dump activity that you see in the crypto space is a clear demonstration that they should be regulated by the SEC. Regulation is unpopular among the people inside the regulated industry, but it protects society as a whole.

dsfyu404ed 7y ago
>but it protects society as a whole. Regulations may be a net positive overall but there are plenty of examples of bad regulation. The general case does not necessarily apply to any one case and even if it does there's still plenty of room to screw up the implementation. You can't just hand wave and say "well regulation is generally good so therefore this specific regulation must also be good". That's the same flawed logic as using demographic statistics as if they apply to individuals. I can't believe I'm defending crypto here.
- danmaz74 7y ago
  Not the op, but: it's not that every piece of regulation is great, but regulation as a whole protects society as a whole
nostrademons 7y ago
It's often the other way around: regulation is popular among people inside the regulated industry (it keeps competitors out, while being treated as "just business as normal" by employees of the regulated industry), while being unpopular with potential new entrants on the outside. The only industries that really fight regulation are those where there's currently a mad scramble of new startups trying to gain position (see eg. dot-coms in 1999 or crypto in 2019). Nurses don't fight HIPAA, bankers don't fight margin requirements, contractors don't fight building codes, brokers don't fight broker licensing, and daycares don't fight safety standards.
- miohtama 7y ago
  Banks lobby against regulation that would protect the consumer, make pricing more transparent and generally hurt banks' bottom line. https://www.huffpost.com/entry/auction-2012-banks-lobby-washington_n_1240762?guccounter=1 https://www.huffpost.com/entry/auction-2012-banks-lobby-wash... Corporate lobbying has not been that strong in EU, where SEPA wire transfers are fee and merchant card fees reasonable capped. And now as the latest PSD2 directive the banks must give you an API access to your own bank account.
  - linuxftw 7y ago
    Banks are a special case. Much of the modern banking system would be considered fraud 100 years ago, but banks were among the first to figure out that they can put pretty much anything into a financial contract and it will be binding. The US literally created the FDIC because banks are allowed to gamble with depositor's money.
- gamblor956 7y ago
  Nurses aren't regulated by HIPAA, hospitals and medical device companies are and they fight HIPAA all the time. Bankers don't deal with margin requirements...you're thinking of investors. Contractors don't fight building codes because they just work for others, but developers (that hire the contractors) do, as do realtors. Brokers do fight broker licensing all the time, because it restricts what they can profitably sell. Really, the only example you provided that was correct was that daycares don't fight the safety standards imbued into the day care licensing requirements. (Yes, daycare is a licensed business in most states.) Generally, regulation is not popular amongst the regulated industry. However, the lack of regulation is far less popular than the fear of unregulated competition in some markets where "startups" try to "disrupt" the status quo by imposing externalities on society rather than absorbing them internally as they would if they adhered to regulations.
  - noelsusman 7y ago
    This isn't really the point, but nurses are regulated by HIPAA. Everyone who touches patient data is personally liable for the safety of that data and may face civil and/or criminal penalties if a breach occurs.
    - gamblor956 7y ago
      No, if you're going to make a silly argument you need to be aware that nurses are regulated by their licensing boards. The HIPAA regulation is literally just a regulation that minimally impacts their handling of patient data, not their professional practice. Their responsibility is literally to follow the data-protection policies set forth by the facilities they work for. Technically I was once regulated by HIPAA as well...when working for healthcare clients, with respect to patient data.

dsfyu404ed 7y ago

>but it protects society as a whole. Regulations may be a net positive overall but there are plenty of examples of bad regulation. The general case does not necessarily apply to any one case and even if it does there's still plenty of room to screw up the implementation. You can't just hand wave and say "well regulation is generally good so therefore this specific regulation must also be good". That's the same flawed logic as using demographic statistics as if they apply to individuals. I can't believe I'm defending crypto here.

danmaz74 7y ago
Not the op, but: it's not that every piece of regulation is great, but regulation as a whole protects society as a whole

nostrademons 7y ago

It's often the other way around: regulation is popular among people inside the regulated industry (it keeps competitors out, while being treated as "just business as normal" by employees of the regulated industry), while being unpopular with potential new entrants on the outside. The only industries that really fight regulation are those where there's currently a mad scramble of new startups trying to gain position (see eg. dot-coms in 1999 or crypto in 2019). Nurses don't fight HIPAA, bankers don't fight margin requirements, contractors don't fight building codes, brokers don't fight broker licensing, and daycares don't fight safety standards.

miohtama 7y ago
Banks lobby against regulation that would protect the consumer, make pricing more transparent and generally hurt banks' bottom line. https://www.huffpost.com/entry/auction-2012-banks-lobby-washington_n_1240762?guccounter=1 https://www.huffpost.com/entry/auction-2012-banks-lobby-wash... Corporate lobbying has not been that strong in EU, where SEPA wire transfers are fee and merchant card fees reasonable capped. And now as the latest PSD2 directive the banks must give you an API access to your own bank account.
- linuxftw 7y ago
  Banks are a special case. Much of the modern banking system would be considered fraud 100 years ago, but banks were among the first to figure out that they can put pretty much anything into a financial contract and it will be binding. The US literally created the FDIC because banks are allowed to gamble with depositor's money.
gamblor956 7y ago
Nurses aren't regulated by HIPAA, hospitals and medical device companies are and they fight HIPAA all the time. Bankers don't deal with margin requirements...you're thinking of investors. Contractors don't fight building codes because they just work for others, but developers (that hire the contractors) do, as do realtors. Brokers do fight broker licensing all the time, because it restricts what they can profitably sell. Really, the only example you provided that was correct was that daycares don't fight the safety standards imbued into the day care licensing requirements. (Yes, daycare is a licensed business in most states.) Generally, regulation is not popular amongst the regulated industry. However, the lack of regulation is far less popular than the fear of unregulated competition in some markets where "startups" try to "disrupt" the status quo by imposing externalities on society rather than absorbing them internally as they would if they adhered to regulations.
- noelsusman 7y ago
  This isn't really the point, but nurses are regulated by HIPAA. Everyone who touches patient data is personally liable for the safety of that data and may face civil and/or criminal penalties if a breach occurs.
  - gamblor956 7y ago
    No, if you're going to make a silly argument you need to be aware that nurses are regulated by their licensing boards. The HIPAA regulation is literally just a regulation that minimally impacts their handling of patient data, not their professional practice. Their responsibility is literally to follow the data-protection policies set forth by the facilities they work for. Technically I was once regulated by HIPAA as well...when working for healthcare clients, with respect to patient data.