The problem with both the SEC and the California equivalent is their chilling effects on new technologies. They send letters to companies saying "we think you'

The problem with both the SEC and the California equivalent is their chilling effects on new technologies. They send letters to companies saying "we think you're doing something bad", but don't tell them exactly what or file a lawsuit. Now the company is stuck. They can keep operating, but if they are found to actually be in violation, they can be fined all the way back to when they first got the letter. So their only real option is to just stop doing business until they get an actual lawsuit or another letter stating that the enforcement agency is no longer thinking about investigating them. I've personally been affected by this twice. Once the California regulator sent a letter to a crypto platform I was using, and they simply stopped allowing Californians to use the platform. I had to personally lobby on their behalf (along with them and many others) to the regulator to either sue them or release them from liability so I could get back on to the platform. They shouldn't be allowed to send these letters, or if they do, they should require specifics so the company can stop doing the specific thing(s) the regulator doesn't like.