GameStop Frenzy Is Tough Call for Regulators Focused on Transparency
Washington was quick to react to the wild ride of
stock and the social-media-fueled trading frenzy that by some accounts pitted everyday people against Wall Street.
Barring evidence that people were trying to manipulate the market, regulators may not have much to do. One of the core principles of market regulation in the U.S. is transparency—give investors information and let them decide. The GameStop drama was nothing if not transparent.
“You can sell garbage to the public as long as you say to the public, ‘This is garbage.’”