Also, punishing fraud, and creating a gatekeeper that every party needs to get approval from before being allowed to participate in a market activity, are two entirely different things. The law should be reactive. We shouldn't be denying people their liberty as a preemptive measure to stop crime.

>>fraudsters / unregulated securities

I just noticed this conflation. An unregulated security is a security that has not been approved by some gatekeeper. This is totally different from fraud, and these two shouldn't be put in the same category.