HAL SCOTT, HARVARD LAW SCHOOL

The key regulatory issue facing hedge funds is registration and position reporting that would go with it. The attempt by the SEC to require registration was invalidated by the District Court Circuit by the 2006 Goldstein case on the grounds that the SEC lacked statutory authority. The decision was not overridden by the US Congress. This may well change given the US Federal Reserve Board's bailout of Bear Stearns. Some argue that policymakers could have greatly benefited by more detailed informat