[vmception]

no, I don't, I think Gary Gensler is uniquely dangerous and that the oversight is inadequate. Its not about JP Morgan. Its about him exercising his craftily accumulated power. Would have totally flown under my radar if it was just the SEC for now, or just the CFTC for now. But the simultaneous thing rings the alarms for me.

[rp1]

Normally people say that power is being wielded dangerously when the power is used to do something disagreeable. Simply enforcing the law correctly doesn’t seem dangerous to me.

[aftbit]

More perceptive people separately consider the means and goals. Just because power is currently being used in a way that you agree with does not imply that the power is not dangerous. See "nothing to hide, nothing to fear" and "think of the children" as distractions to keep people complacent while excessive power is accumulated. After that, the excuses become unnecessary and the power can be used for any goal, aligned or unaligned with the people.

[rp1]

You still haven’t given an example of how coordinating the two agencies can lead to a bad outcome. If all that can be done is enforce the law, then there is no issue. You keep implying something extra-legal can be done through the coordination, but aren’t providing any specifics.

[vmception]

oh, context is important then. those agencies are bullies. many times they operate under broad and ambiguous fraud/compliance statutes that don't specifically codify the infraction they disagree with. this puts all market participants in a constant guessing game with them, some more than others. so its Christmas and they want a kickback before the end of the year, whatsapp bro? send the money to our Miami field office, kthxbai.

[Barrin92]

that's a feature and not a bug because a regulatory agency without leeway and too strict formal requirements in reality has no ability to deal with actors who know how to maneuver around them and is toothless.

That market participants don't know how far an agency can go is equivalent to Israel's nuclear policy, little bit of ambiguity and uncertainty has a deterrent effect. And if anything given how routinely market participants still abuse every little trick they can regulators aren't scary scary enough.

And no offense but you've got "fintech, commodities and digital assets" in your bio, are you by any chance making money off some underregulated crypto scheme and have been at the receiving end of regulatory action?

[vmception]

Hahaha good catch, no, have not been sanctioned by a financial regulator :) like, I would be defensive about that but its a routine question every financial institution asks during onboarding or account creation

I’ve felt similarly about these agencies long before I brushed against their purview