Clearly thats not the job of the SEC and similar organisations all over the world, but what registering securities with them does guarantee is precisely whats been lacking with bitcoin securities: transparency. A registered security at least guarantees you know who you are dealing with (Labcoin anyone?), it guarantees the issuer makes public all kinds of relevant information regarding the business, business plan, financials etc so that investor can actually make a rational decision and doesnt have to gamble on it being yet another scam or not.

Of course that doesnt help too much if these securities trade on platforms that close their doors one day for whatever reason, possibly taking customer funds with them, hence a need to trade them on regulated exchanges. Now thats going to be a tall order for a bitcoin venture, but perhaps the crowd funding legislation you alluded to in your next post will make this more viable. I certainly hope so. Right now the bitcoin security (misnomer if there ever was one) scene is more akin to a casino on second life, than a true investment market.