Ideologically I'm opposed to regulating shitcoins from a first principles perspective. It should just be wild-west.

But I think its worthwhile to first ask: How did we wind up with an SEC in the first place? Short version is people in 1900s got rugged by shitstocks so all advocated for regulation to prevent it.

So we have a conundrum, if we are too wild west, and if enough people get rugged then they will advocate for strict regulations. Maybe far stricter than would have existed if they started with some "reasonable" regs. (disclaimer: I'm not advocating for regs, simply pointing out how process works).

The hilarity of the current situation is I'm not sure on what basis the SEC can even regulate the most degen of the shitcoins. Those shitcoins aren't "promising a return", nor is there even an inference that its a commercial enterprise.

Fartcoin and ObamaPregnantButt are something like collectibles? Should the SEC also regulate people selling pet rocks on eBay?