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The goal of the SEC used to be to ensure that companies could not lie to and mislead investors. The goal wasn't to ban investment in snakeoil, it was to ensure

The goal of the SEC used to be to ensure that companies could not lie to and mislead investors. The goal wasn't to ban investment in snakeoil, it was to ensure there was some grounding in truth for the financials of businesses. Instead, it has become the goal of the modern regulatory regime to put guardrails around possible investments. If people want to blow their stimmy check on a gamble there are many ways to do so. Is that really something we want the SEC 'protecting' against? Just remember all the people that were called fools for investing in the Google bubble stock, Netflix when they shuttered the mailorder business, or Facebook when there was no clear path to monetization. Investing in high-risk high-reward ideas is actually best when young.

steveBK123 3y ago
Of course the government should regulate financial products. There is no end to complicated weapons of mass destruction financial products that bankers and lawyers can cook up. You think the average joe stands a chance interpreting them vs banks? This is why some products require you to be an accredited investors. Or in retail for example ARMs require plain language one-pagers and disallow bad features like balloon payments that caused harm during GFC. Banks do not choose to limit themselves altruistically in the absence of regulation. This is the problem with retail crypto.