That doesn't follow. Of course lax enforcement of government regulation by, in the case of the SEC, underfunded agencies, will reduce the efficacy of the regula

That doesn't follow. Of course lax enforcement of government regulation by, in the case of the SEC, underfunded agencies, will reduce the efficacy of the regulation. But that says nothing about the law itself either way. I wouldn't hire 50 cops to patrol New York and then complain that laws against armed robbery solve no problems.