The market's capacity to create its own institutional moral order is discussed along with its tendency to pursue special interests and thus continue practices that cause instability. The unintended and unforeseen consequences of regulation imposed by the Congress and administered by the Securities and Exchange Commission are explored. Confusions resulting from legislative compromise give rise to faulty administration and unclear goals, thus impairing the regulatory effort. Unclear regulatory goals result in weakened social controls. The experience of the United States in regulating the securities industry is discussed, with special emphasis on the need to develop strategies for regulating international markets.