When I first read your comment I agreed, however as I think about it, this type of regulation prevents lower income people from transitioning to a different class. I'd say the funding spent on this type of regulation would be better spent on social safety nets.

People should be free to take financial risks. There's currently nothing stopping people from investing everything into a small business, or blowing it all at the casinos or on lottery tickets. There's no justification for singling out securities and limiting people's right to invest their money in them.