4 ms·
If everything is offshore it's not subject to the SEC's jurisdiction in the first place. "Permission-less financial innovation" generally means "breaking feder
by khuey 7y ago
If everything is offshore it's not subject to the SEC's jurisdiction in the first place.
"Permission-less financial innovation" generally means "breaking federal securities law" because nearly all of these scheme ultimately choose to involve US persons at some point.
- wpietri 7y agoExactly. And there's a clear effect here akin to adverse selection. Financial innovators on the up and up will just use the existing platforms. People who are up to no good and are hoping not to get arrested will have a strong incentive to use new platforms. That moves right on to the slippery slope: the new platforms get reputations for being the financial equivalent of bad neighborhoods, which means even less legitimate financial innovation. Eventually, nobody in their right mind will use the new platform, so it's down to criminals and fools.