[H]aving agencies like the SEC gives people a false sense of security.
Kind of like the FDA and the Consumer Product Safety Commission. They don't really check for melamine in food or lead in toys from China. But they give the public a false sense of security: "Well, I know there's a government agency responsible for it somewhere, so it must be OK!"
Sure, there will always be Ponzi schemes. But they don't grow to $50 billion without government endorsement.
Paul actually said this a few days ago, but I just found the video.