>Money and self-regulation is never a good mix and it has not even been 10 years since the last time we have all suffered the result.

Unless you have unyielding cryptographic primitives to help.

I'm at the Austin Bitcoin conference right now listening to a talk about Open Transactions and cryptographic exchange auditing. It sounds like exchange theft is pretty much a solved problem. Using crypto, we now have ways to make theft or coin loss pretty much a problem of the past, because we can make operating a fractional reserve exchange impossible and make stealing coins very, very hard. It seems like cryptographic regulation is drastically more effective than government regulation.