If you're looking for the SEC to protect morons from stupid scams like bitconnect, xrp, or eth, you're going to be disappointed. They will simply creat an oligopoly for shitcoins, where only a few shitcoin tycoons like @a16z can make new stupid shitcoin scams.

Unlike market regulation, govt regulation faces no market test, so can be very easily corrupted to benefit regulator & regulated at expense of consumer. Rather than protect consumers, regulatory bodies are captured to protect producers by granting them some element of oligopoly.

This is why some nobody might go to jail for decades for making ~$10k insider trading some stupid jpegs, whereas big shitcoin funds will never even be investigated for making hundreds of millions dumping the Luna scam as their CEO went on TV to tell suckers to buy.

The SEC can ruin the lives of countless nobodies & it would be good for the career of all SEC workers involved. But anyone who tries to mess with the shitcoin tycoons will very quickly find himself out of a job.

Government regulations can't stop scams, they can only protect those behind the big ones. The only way scams end is when all the morons who invest in them lose all their money & the crooks behind them disappear.