Securities Regulation as Class Warfare

31 Pages Posted: 25 Feb 2021

See all articles by Jonathan R. Macey

Jonathan R. Macey

Yale Law School; European Corporate Governance Institute (ECGI)

Date Written: February 20, 2021


This Article examines the regulatory goals of creating "fair, orderly, and efficient" securities markets in light of the recent issues involving trading in the shares of GameStop Corp. (GME) through the broker-dealer firm Robinhood Financial LLC. The GameStop/Robinhood saga casts significant doubt on the notion that the SEC is achieving its “tripartite purpose to maintain fair, orderly, and efficient markets, and facilitating capital formation.” Moreover, the saga provides further support for the view that market forces tend to make markets fairer, where fairness is defined as investors “getting what they pay for,” rather than as investors “beating the market,”” by earning abnormal returns. Further, market process tend to make markets more efficient, while regulation tends to make markets less efficient. Finally, it appears that regulation tends to further the interests of Wall Street elites over the interests of ordinary investors.

Keywords: Securities Regulation, Efficiency, Fairness, GameStop, Robinhood, Reddit

JEL Classification: K22

Suggested Citation

Macey, Jonathan R., Securities Regulation as Class Warfare (February 20, 2021). Columbia Business Law Review, Forthcoming, Available at SSRN: or

Jonathan R. Macey (Contact Author)

Yale Law School ( email )

P.O. Box 208215
New Haven, CT 06520-8215
United States
+203-432-7913 (Phone)
+203-4871 (Fax)

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics