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Reddit doesn't want the SEC breathing down their necks. They are looking for an excuse to ban them. ...and if they can't find one, the SEC will probably just

Reddit doesn't want the SEC breathing down their necks. They are looking for an excuse to ban them. ...and if they can't find one, the SEC will probably just order them to shut it.

emteycz 6y ago
Based on what do you think SEC can order random social media companies to shut down forums?
- deleted 6y ago
  [deleted]
- koheripbal 6y ago
  They will make one phone call to the CEO saying they are opening an investigation that Reddit is facilitating and unlicensed forum for providing investment advice, and that to limit potential liability, the SEC is recommending that Reddit close the sub in question. Reddit's one lawyer will sit with the CEO, and they will have a 4 second conversation "Yeah, we're not sticking our neck out for those self-proclaimed retards.". ...and that's it. Reddit has banned subs for far far less.
  - frays 6y ago
    Although this may have been a simple explanation for you, it brought a lot of insight for me. Thank you.
  - tester34 6y ago
    there are 4.3 milion of those "self-proclaimed retards" Do you think they'd try to gamble 2-4 milions users?
  - imgabe 6y ago
    There is no licensing requirement to run a forum. Any person is free to offer their opinions about stocks.
- prawn 6y ago
  I have run a web forum for 15 or so years. There are often threads or comments I think should remain up, but that legal pressure pushes me to remove. There's "I think this is probably fair in a legal sense" and "I think this is probably fair in a legal sense and I'm willing to gamble my family's assets/wellbeing on proving that in court for the benefit of random forum users that don't care about me for a second."
- vergessenmir 6y ago
  There's is definitely chatter in the finance community to regulate this kind of behaviour to prevent it from happening again. They're all bad faith arguments which have ranged from collusive behaviour being insider trading (even though messages were public) to foreign interference destabilising US markets. There are multiple attack points in which pressure can be applied: the trading platforms ( Robinhood et al), the communication platform (Reddit, Discord), the regulatory framework or through back channels at the board level. If several funds do end up going bankrupt, which is unlikely to happen now, regulation or some legal framework would likely follow.

Reddit doesn't want the SEC breathing down their necks. They are looking for an excuse to ban them. ...and if they can't find one, the SEC will probably just order them to shut it.

emteycz 6y ago

Based on what do you think SEC can order random social media companies to shut down forums?

deleted 6y ago
[deleted]
koheripbal 6y ago
They will make one phone call to the CEO saying they are opening an investigation that Reddit is facilitating and unlicensed forum for providing investment advice, and that to limit potential liability, the SEC is recommending that Reddit close the sub in question. Reddit's one lawyer will sit with the CEO, and they will have a 4 second conversation "Yeah, we're not sticking our neck out for those self-proclaimed retards.". ...and that's it. Reddit has banned subs for far far less.
- frays 6y ago
  Although this may have been a simple explanation for you, it brought a lot of insight for me. Thank you.
- tester34 6y ago
  there are 4.3 milion of those "self-proclaimed retards" Do you think they'd try to gamble 2-4 milions users?
- imgabe 6y ago
  There is no licensing requirement to run a forum. Any person is free to offer their opinions about stocks.
prawn 6y ago
I have run a web forum for 15 or so years. There are often threads or comments I think should remain up, but that legal pressure pushes me to remove. There's "I think this is probably fair in a legal sense" and "I think this is probably fair in a legal sense and I'm willing to gamble my family's assets/wellbeing on proving that in court for the benefit of random forum users that don't care about me for a second."
vergessenmir 6y ago
There's is definitely chatter in the finance community to regulate this kind of behaviour to prevent it from happening again. They're all bad faith arguments which have ranged from collusive behaviour being insider trading (even though messages were public) to foreign interference destabilising US markets. There are multiple attack points in which pressure can be applied: the trading platforms ( Robinhood et al), the communication platform (Reddit, Discord), the regulatory framework or through back channels at the board level. If several funds do end up going bankrupt, which is unlikely to happen now, regulation or some legal framework would likely follow.