Legislative Overkill
A law enacted to stop or prevent the abuse of a loophole, but ends up imposing more restrictions than are necessary for reasonable prevention.
Investopedia Commentary
In the context of the market, many people believe that investor education and further transparency do much more for the market than stricter legislation.
Related Links
Policing The Securities Market: An Overview Of The SEC
Antitrust Defined
What Was The Glass-Steagall Act?
See also: Financial Accounting Standards Board (FASB), Formal Tax Legislation, Loophole, Price Transparency, Securities and Exchange Commission