The Law of Speculation shouldn't, won't, and can't be reformed based on blog posts (see Part 1, Part 2, and Part 3 of this series). It should be reformed based on agreed upon principles and the belief that the benefits of properly doing it would outweigh the negatives that accompany all advances.
The Law of Speculation may also just emerge in time without any law change because the rest of the world will carry on whether or not any given country changes its laws. It's probably already underway. Capital and talent can increasingly move around the world without even moving due to the Internet. Stopping people from accessing the world through the Internet is a losing battle.
1. The customer comes first
2. Go global
3. Good things require changing old things
A. The public should know specifically who they are dealing with, their legal address, and who their directors are and have been.
B. Competition lowers prices.
C. Competition means choice and difference, which makes consumers better off.
D. Predicting what customers will want years from now is impossible but it will be different than now so don't lock in today forever through rules.
E. Regulators can't ever know better than customers what customers want.
F. The public is good at sniffing out a deal that's too good to be true.
G. Special market access rules aren't needed for customers to know where the best deals are.
H. There's more to know about an investment than how many dollars they made last quarter.
I. It should be easier for a small local store to raise money from their neighbourhood than a giant well-capitalized company.
J. Regulators often do not reflect the demographics of the people they regulate and lack cultural competency as a result.
K. Customers should get what they want, almost always.
A. The Internet is here to stay.
B. Residency requirements for key staff, executives, and directors helps to ensure that the people behind the business are available to answer for what they do.
C. Digital services by the government should be the default and includes programmatic interactions through APIs.
D. Growth can only come from a significant increase in the global marketshare because the world is far larger than any country.
E. Massively expanded business activities can only come from the global market and this can only occur if it is easy to do business.
F. The world will not get less connected in the future.
G. Global competition can reach better solutions than any government policy analyst could ever come up.
H. Attracting global commerce will increase employment which creates the tax revenue that government requires.
A. Regulatory burdens should be proportionate to the scale of the business being regulated and what they are doing.
B. Entrepreneurs need to be able to test new ideas with limited rules.
C. There are many views about speculation so the rules need to account for diversity of what the rules should be.
D. Change is not easy and many people will oppose it reflexively.
E. Rule changes have winners and losers, and the plight of the losers must not be more than what the winners get.
F. Managing money on behalf of other people ought to be a low-margin, low-profit business.
G. Negatives come up with positives and must be dealt with seriously.
A. How people experience laws ("enforcement") is more important than what is written.
B. Statutes aren't the only solution - the common law has been dealing with fraud, misappropriation and taking for centuries.
C. Laws don't create the goodness of people or make them smart enough to make good decisions.
D. The government should have as little discretion as possible.
E. Restrictions don't always succeed but they always have costs.
F. A dedicated police force is needed to effectively prevent and stop certain crimes in speculative markets because of investigatory powers.
G. Private investigation can result in better information to the public if there is a reward for uncovering criminal activity (e.g. fraud).
H. Managers and owners care more about their own jeopardy than that of the companies they work for.
I. Laws made for yesterday's scandals may not be suitable for tomorrow.
J. Systems (not just rules) must be transparent.
But What's The Law Of Speculation?
The goals and principles of a system are what informs the rules and the vision. The next article in this series will discuss a specific model of reform of the Law of Speculation.