Unfortunately the regulation is there to make sure investment decisions can be made fairly and based on factual material. They are not there to tell you if an investment is profitable or not.

Yeah but the marketing material rarely says we always lose money and will likely never turn a profit.

The S-1 is required to say so if this is the case. As are the 10-Ks.

bitconneeeeeeeect!

This should not be downvoted. It can get this bad somewhat quickly.

Now that there will be "competition" from direct listings, will due dilly get more or less stringent?

Or will we just look at traditional listing as higher quality, looking more dubiously at companies that choose direct listing? One might look at SPAC as a similar less vetted avenue some companies are taking right now.

I suspect well known companies with good public reputations will not gain much from going the traditional routes. But lesser known companies will need to go traditional to have that extra level of vetting and get a big brand name behind them.