SEC's Woes

The SEC has admitted that it lacks the expertise or the technology to monitor securities trading and that, therefore, it leaves such matters to the SROs, Finra and NYSE Regulation.  Yet the SEC is close to proposing rules to "regulate" trading practices, flash trading and dark pools among others.  What is wrong with this picture?  The SEC, without data and expertise, is ready to impose trading rules on the markets.  This follows a long history of the SEC micro-meddling in the market procedures and struggling with enforcement.  It should reverse course:  simplify trading rules and upgrade enforcements of the rules that are left (those against fraud).  The effect would be to let markets innovate and to deter fraud in trading.  Now we stop innovation and poorly prosecute fraud.