# Regulatory capacity

`kaal:entity:regulatory-capacity`

**Status.** derived

This node is assembled mechanically from the 6 claims that carry the concept tag `regulatory-capacity`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

6 claims across 5 works, 2009 to 2024.

**2009**

- [1428387-033](https://wulfkaal.github.io/claims/1428387-033) [failure/argued] *(failure mode)* -- 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.
  > 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.
  Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

**2016**

- [2740477-003](https://wulfkaal.github.io/claims/2740477-003) [failure/asserted] *(failure mode)* -- Exponential disruptive innovation has the potential to overwhelm the existing regulatory process outright, not merely to strain it.
  > In short, exponential disruptive innovation has the potential to overwhelm the existing regulatory process.
  Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477
- [2808132-004](https://wulfkaal.github.io/claims/2808132-004) [failure/argued] *(failure mode)* -- Exponential disruptive innovation has the potential to overwhelm the existing regulatory process entirely, not merely to strain it.
  > increase substantially in the rulemaking process.12 In short, exponential disruptive innovation has the potential to overwhelm the existing regulatory process.13
  Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132
- [2808132-049](https://wulfkaal.github.io/claims/2808132-049) [failure/asserted] *(failure mode)* -- 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.
  > and triangulation. Currently no regulatory processes and data evaluation exist that could facilitate such analyses and anticipatory regulatory action.
  Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132

**2019**

- [3405660-004](https://wulfkaal.github.io/claims/3405660-004) [failure/asserted] *(failure mode)* -- 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.
  > 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.
  Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660

**2024**

- [4796714-020](https://wulfkaal.github.io/claims/4796714-020) [mechanism/argued] *(failure mode)* -- 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.
  > 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.
  Wulf A. Kaal, AI Governance (2024). SSRN: https://ssrn.com/abstract=4796714

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/regulatory-capacity.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.