This would be under the umbrella of SEC/FTC/Consumer Protection

Screening cryptocurrencies like the SEC does for companies going IPO is not something that existed overnight and developed over time. This is not a good idea and would undermine the system causing us to potentially lose a large footprint in something that is here whether we like it or not.

A parallel that exists today would be a company going public and offering an IPO (Initial Public Offering). There is due diligence that the company is expected to produce and in future the company is expected to file publicly available 10q and 10k reports. These reports offer insight into the inner workings, needs, and risks that the companies expect/perpetuate. They can be held accountable for the information (or lack of information) in these reports in regards to the shareholder.

While this structure is something that I feel would be beneficial to a Cryptocurrency environment in terms of consumer protection, the underpinnings of Cryptocurrency architecture is around anonymity and the idea that if you try to "manipulate" the system, you would be required to invest so many resources that you risk losing as much as you would have gained (or possibly more).

To explain my point, let me provide an example of how this system works to resolve issues in order to exist and remain trustworthy and useful.

There are flaws that exist in the system which are continually being worked on. One historical example of this is Proof of Work. (BTC still uses PoW, Ethereum has switched to PoW) It initially required significant resources of a computers CPU to solve a complex math problem. The problem would stay as complex as the number of CPU's "solving" (people joining the network). As the solving power grew, the range of the problem grew (Imagine guessing a number between 1-10 grew to between 1-100). The growth worked so that it always took around 10 minutes to solve this (statistically speaking).

The oversight was in not realizing that this form of problem would benefit greatly from something that can perform matrix multipli…  Read morecation. CPU's have dedicated "paths" for addition. To multiply they just take this path multiple times. Graphics Cards have dedicated "paths" for multiplication. So you can see that GPU's can quickly outperform CPU's by orders of magnitude eventually leading to "GPU Farms" and exceptional energy consumption. It then became further exacerbated by ASIC's (Application Specific Integrated Chips). As the name implies, this can be custom built to perform a specific task efficiently, but only that task. So solving this complex problem becomes further orders of magnitude easier for an ASIC, than a GPU.