{
 "@context": "https://schema.org",
 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/regulatory-capacity",
 "identifier": "kaal:entity:regulatory-capacity",
 "name": "Regulatory capacity",
 "termCode": "regulatory-capacity",
 "inDefinedTermSet": {
  "@id": "https://wulfkaal.github.io/entities/index.json"
 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
 "canonicalForm": "https://wulfkaal.github.io/entities/regulatory-capacity.md",
 "sha256": "e7f899099570be512eff7bc6afc9be7bdc398fe61d21a4e7c475ccea0469c97b",
 "additionalProperty": [
  {
   "@type": "PropertyValue",
   "name": "status",
   "value": "derived"
  },
  {
   "@type": "PropertyValue",
   "name": "claim_count",
   "value": 6
  },
  {
   "@type": "PropertyValue",
   "name": "work_count",
   "value": 5
  },
  {
   "@type": "PropertyValue",
   "name": "year_span",
   "value": [
    "2009",
    "2024"
   ]
  },
  {
   "@type": "PropertyValue",
   "name": "non_current_claims",
   "value": 0
  }
 ],
 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1428387-033",
   "identifier": "kaal:claim:1428387-033",
   "text": "Mandatory risk disclosure to the SEC would probably fail on staffing grounds, because professionals capable of understanding hedge fund risk data would be disincentivized to use that knowledge for supervision rather than economic gain, finding the private sector far more lucrative.",
   "abstract": "Professionals who could understand the risk data would probably be disincentivized to use their knowledge for purposes of supervision rather than economic gain. Knowledgeable risk analysts may find the private sector much more lucrative than the public sector.",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "where the regulator must interpret data on hard-to-value assets and complex instruments"
   ],
   "source_pdf_sha256": "6aa3a280dc6750723be2389f3af2aabf3a16c4ce20e49fcdaddd7f2ea95a67aa",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2740477-003",
   "identifier": "kaal:claim:2740477-003",
   "text": "Exponential disruptive innovation has the potential to overwhelm the existing regulatory process outright, not merely to strain it.",
   "abstract": "In short, exponential disruptive innovation has the potential to overwhelm the existing regulatory process.",
   "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477",
   "datePublished": "2016",
   "claim_type": "failure",
   "confidence": "asserted",
   "is_failure_mode": true,
   "scope_conditions": [],
   "source_pdf_sha256": "c72871b76fa2ad5a8a69ee8d3defc8f64e624be9052ce763e79cf6c58883f726",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2808132-004",
   "identifier": "kaal:claim:2808132-004",
   "text": "Exponential disruptive innovation has the potential to overwhelm the existing regulatory process entirely, not merely to strain it.",
   "abstract": "increase substantially in the rulemaking process.12 In short, exponential disruptive innovation has the potential to overwhelm the existing regulatory process.13",
   "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132",
   "datePublished": "2016",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "exponential rates of innovation",
    "existing institutional rulemaking infrastructure"
   ],
   "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2808132-049",
   "identifier": "kaal:claim:2808132-049",
   "text": "No regulatory processes or data evaluation capabilities currently exist that could carry out the cross-validated analyses and support the anticipatory regulatory action the authors propose.",
   "abstract": "and triangulation. Currently no regulatory processes and data evaluation exist that could facilitate such analyses and anticipatory regulatory action.",
   "citation": "Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132",
   "datePublished": "2016",
   "claim_type": "failure",
   "confidence": "asserted",
   "is_failure_mode": true,
   "scope_conditions": [
    "as of 2016 in the United States regulatory system"
   ],
   "source_pdf_sha256": "3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3405660-004",
   "identifier": "kaal:claim:3405660-004",
   "text": "Neither national nor international regulators have the resources to fully investigate or regulate hedge fund activity, and the industry actively lobbies to preserve the resulting information asymmetries.",
   "abstract": "National and international regulators do not have the resources to fully investigate or regulate the activities of hedge funds. Hedge funds are lobbying to preserve information asymmetries as far as possible and avoid enhanced transparency.",
   "citation": "Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660",
   "datePublished": "2019",
   "claim_type": "failure",
   "confidence": "asserted",
   "is_failure_mode": true,
   "scope_conditions": [],
   "source_pdf_sha256": "cf507b1833071765bc13a5605f38c2591582eca85f40869e38b6ff075c04d29d",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4796714-020",
   "identifier": "kaal:claim:4796714-020",
   "text": "The gap between regulators' technical understanding and the state of the art in AI drives rules to one of two failure states: too vague to be enforceable, or so prescriptive that they suppress creative and beneficial uses of AI.",
   "abstract": "There is often a gap between the regulators' technical understanding and the state of the art in AI technology. This gap can lead to regulations that are either too vague to be enforceable or overly prescriptive, stifling creative and beneficial uses of AI.",
   "citation": "Wulf A. Kaal, AI Governance (2024). SSRN: https://ssrn.com/abstract=4796714",
   "datePublished": "2024",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "applies where regulators lack current technical expertise",
    "holds for fast moving technical domains"
   ],
   "source_pdf_sha256": "59fa63bae179e8f9b6b8efbdf90cee28400276512a1b04f9f579a48641305c93",
   "status": "current"
  }
 ],
 "description": "6 claims in the published works of Wulf A. Kaal carry the concept tag 'regulatory-capacity'. Derived node: a roster, not an adjudicated definition."
}