The Securities and Exchange Commission (SEC) just released its top enforcement priorities for the year. Rather than dig into systemic fraud in our markets, they’ll be regulating….confetti?
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According to a report out this morning on Reuters, the SEC will be focusing on:
”…behavioral prompts, differential marketing, game-like features…and other design elements or features designed to engage with retail investors on digital platforms.”
In plain English, they’re talking about the confetti some stock trading apps display when you make a trade. But that’s not all.
The SEC will also be regulating how funds can use certain words:
…funds with keywords such as “green,” “sustainable,” “ethical,” or “socially responsible” in their names will have to reflect an emphasis on these areas through their investing choices.
As if investors couldn’t simply look at the holdings and see if Exxon Mobil is there or not!
Combatting widespread financial fraud is nowhere in the SEC’s agenda.
Illegal naked short selling pervades our markets. Millions upon millions of trades fail to clear each day, especially in heavily shorted stocks like AMC Entertainment Holdings and GameStop.
But the SEC won’t be looking into that.
Despite $8 billion in losses on FTX, cryptocurrency regulation won’t be a focus for the SEC this year either. Why bother with that when the SEC could be requiring “a summary of registrants’ human capital resources,” whatever that is?
It’s no wonder author Jesse Eisinger called the feds “the chickensh*t club.”
The SEC is a toothless regulator. It busies itself with make-work, avoiding the real issues plaguing our markets.
Gary Gensler and the SEC need to start going after the real criminals.
What do you think of SEC enforcement? Leave a comment at the bottom and let me know!
More on markets:
Major Hedge Fund Down 54% — Survival in Doubt
Short Sellers Down $81 Billion in 2023
Citadel’s Illegal Trades — The Tip of the Iceberg?
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Photo: “CMI 101: Demystifying Derivatives with CFTC Chairman Gary Gensler” by Third Way is licensed under CC BY-NC-ND 2.0.
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