It's not semantics when what you're saying doesn't make sense and is contradictory to reality.
Actually, I am not sure what issue you're even raising because of how poorly you communicated.
I thought about not responding at all, tbh, but then thought that it's clear you think there is a some sort of material difference between regulation and law.
Checking if the illegal thing has been done is often easier than checking if the regulated thing has been done correctly,
pointedly incorrect. and thats my point that checking the illegal thing is the same thing as checking the regulated thing. but you assert there is some difference.
Thanks for rephrasing. The thing is with regulation when there's a caveat/condition it's forbidden not just a correctness check. I think the underlying sentiment is correct, a blanket ban on something is surely easier to enforce than a nuanced approach.
But that's my whole point since the first post. A blanket ban on securitization just locks away the whole tool when really we should just work to implement effective regulation.
The real problem is that law and subsequent regulation lags behind innovation. Like AI or crypto would be an example. So back in 2008 there was a lot of lag on securitization as an innovation. Subsequent to the crisis, in 2025 market reg is well established on securitization products and derivatives.