Comment by potato3732842

>If the US SEC were replaced by 50 per-state SECs, you'd probably see Alaska or Wyoming becoming the scam capitals because they lack the resources to properly regulate.

Arguably a distinction without a difference but I think you'd have Delaware or somewhere that has plenty of resources being the scam capital and they'd make money off it. Then you'd have a bunch of over-regulated dumps that have driven out their industry and they'd all be screeching about Alaska for having fairly permissive regulations while ignoring the 800lb Delaware in the room. And the other 35ish states would be in the unremarkable middle ground.

You already somewhat see this kind of pattern across existing interstate industries.