But this is only a "problem" for those who want to ride right on the line of what's technically legal. People who strive to stay within what the law is trying to accomplish, who are with the spirit of the law rather than the letter, have no such issues.
I’m just coming at this from a consumer point of view. I want the SEC to be effective so when I invest in some new commodity or security then I know that it at least legal and I won’t lose all my money due to the government declaring it not.
That isn’t the function of the SEC. They make sure issuers have complied with disclosure requirements so investors can make their own decisions. They make sure you get full and fair disclosure and that’s about it. They’re more like the FDA’s regulation of cosmetics (here are the rules, we’ll assume you’re following them and we’ll take action if/when we suspect you’re not) rather than the FDA’s regulation of pharmaceuticals (prove to us this works and is safe before you sell it).
