But I think mostly the answer is that there will be a focus on irrelevancies, a sort of “we have to do something, this is something” approach. “Capitol Hill chatter on possible post @RobinhoodApp – @reddit stock-trading frenzy legislation includes curbs on so-called payment for order flow and short selling,” tweeted Charlie Gasparino, and why not, those are all words that people said about the GameStop trade, so it stands to reason that the legislative response should also use those words. “Robinhood Says Stock Settlement Times Are a Wall Street Risk,” sure, the problem here is T+2 settlement. Or William Galvin is going to go after Roaring Kitty, and poor MassMutual, because they are readily available targets. This whole problem could have been averted if we had stricter rules about life insurance companies monitoring the outside online activities of their financial wellness education directors, why not.
The mentality of “we have to do something, this is something” drives me nuts.
Find Matt Levine at Bloomberg.