Regulators should have acted against crypto years ago. But these agencies have been walking on eggshells because the conservative Supreme Court is inclined to take away much of their enforcement powers. A lot of crypto money has flowed to mostly Republican politicians who support turning the SEC and FTC into hollow shells.

Ultimately the criminal is to blame for the crime. Law enforcement can’t be everywhere actively preventing people from sending money to shady actors, as much as we try to build systems to that effect. Hopefully the FTX collapse is a reminder to both American parties to beware “innovators” bearing gifts, and for SEC to better use the powers they have (for now anyway).