I'm beginning to think that there should be tier's of investor protection that get activated by numbers of complaints or similar metrics. Similar to what we've seen at county-level pandemic restrictions.
Right now all we have are pendulums that swing to overfit against bad behavior, and then swings back the other way because they made it too costly for good actors to participate at all.
The problem with this is it probably would allow the government to pick winners via political favors, which would almost assuredly happen in the present climate if even remotely possible.
I'll elaborate to clear that idea up, the government wouldn't be picking in this model, certain frameworks of investor protections wouldn't apply across the entire industry if certain industry wide thresholds were met.
so instead of only rulemaking and comment periods to change bits and pieces of the protections, there would be the overarching trend to dictate whether it applies or not
Right now all we have are pendulums that swing to overfit against bad behavior, and then swings back the other way because they made it too costly for good actors to participate at all.