[keyanp]

Everyone knows what they are doing when gambling etc

But nowadays crypto is being pitched as an investment to the layperson who doesn’t understand the risks and isn’t being told those risks by the exchanges. It’s those folks the SEC is trying to protect.

That and prevention of larger market issues that can arise from unregulated financial services, ie FTX

[thepasswordis]

>Everyone knows what they are doing when gambling etc

No they absolutely do not.

[aardvarkr]

Gambling is a pretty easy concept to understand, and it’s been with all of us since we were kids. Person A wagers an amount that a certain outcome will occur. Person B accepts that wager and agreed to the terms of the wager. If every kid on the playground can understand how a bet works I guarantee adults can too.

[locallost]

They do. Everyone knows they get the money only if the wind otherwise they lose it all. Most underestimate the "house always wins" factor, but that's not the point here.

Crypto advertises with FOMO on a new world. It's "everybody is doing it, don't be a sucker but a winner in the future", and not "this is a risky asset where you might lose everything".