Dissolve the SEC and all self-regulatory organizations (DTC, FINRA, etc.) and form a new agency called the US Department of Market Protection and Enforcement whose mandate is regulation to maximize fair price discovery and protection of all investors, particularly household investors. This agency will take over the responsibilities of regulation from the SROs and have the law enforcement powers.
Ban all short selling, including the market maker exemption. Failure to do so results in the penalty of forced closure at the market rate, life imprisonment, and a fine of the profits made plus 50%. Penalty applies to the seller and lender, if the lender was aware of and consented to the loan.
Force the closure of all short positions. Failure to do so results in the penalty of forced closure at the market rate, life imprisonment, and a fine of the profits made plus 50%.
Ban all trading of securities outside of a lit exchange to allow for proper price discovery. Trading off a lit exchange results in a penalty of a lifetime trading ban, surrender of relevant licenses, reversal of the trade, and a fine of the purchase price plus 50%. Penalties apply to both parties.
Require shareholder over voting to trigger immediate fraud investigations. Third party voting companies who fail to report these irregularities shall lose their license to operate and be fined the amount of over votes multiplied by the the market price as of the record date or $10 million, whichever is greater.
If a security can be traded by someone, it can be traded by anyone. There are no qualifications or “expert markets.” Exchanges cannot prevent investors from purchasing any security for which they have the funds to purchase, either by policy, fees, denial of services, or any other manipulative tactics.
Require all securities traded on exchanges to be serialized.
Investors who purchase securities should always know where their securities are and informed when and where they have been moved if such an action takes place. Securities cannot be confiscated by the broker or other custodian unless ordered by a judge in connection with a crime. Failure to do so will result in a $10 million fine for each offense to be paid the security holder. More than 3 of these offenses in one year will result in the surrender of business licenses.
The proceeds of all market related fines collected in each calendar year are to be distributed as a Freedom Dividend in the form of a refundable tax credit.