The American Dream Under Siege: How SEC Overreach and Judicial Bias Are Killing U.S. Innovation

By Mark Hewitt

For centuries, the American Dream has represented the promise of boundless opportunity, where anyone with a vision and drive could succeed. From humble garage startups to industry-shaping tech giants, the U.S. has been a crucible of innovation, driven by the belief that hard work and ingenuity could transform ideas into world-changing realities. But today, that dream is at risk, not only from economic and geopolitical shifts but also from the actions of our own regulatory and judicial systems. The increasing overreach and selective enforcement by the Securities and Exchange Commission (SEC) and the courts are driving American innovators out of the country — and into the welcoming arms of nations eager to claim their talents.

The Rise of SEC Overreach and Judicial Bias

The recent case against Rivetz is emblematic of this disturbing trend. In a 2024 ruling, the SEC, supported by the courts, categorized Rivetz’s utility token as a security, even though it made no explicit promises of profit or financial returns. The SEC argued that the company’s promotional language implied a potential for future profit, asserting that Rivetz’s efforts to develop their technology suggested an “expectation of profits.” But this is a dangerous precedent. By setting such a low bar for what can be classified as a security, the SEC is effectively painting every startup that issues tokens or similar digital assets with the same regulatory brush, stifling their ability to innovate and grow.

This type of enforcement is not just stifling, but it’s also selective. It creates an unpredictable regulatory environment where entrepreneurs are left guessing whether their ventures will be the next target. Rivetz, which raised far less than many similar token projects, faced significant legal repercussions, while other projects like Ethereum and Filecoin were allowed to operate freely. Without consistency, these enforcement patterns appear biased and arbitrary, sending a chilling message to innovators.

The Cost of Enforcing Innovation Out of the U.S.

As the U.S. government clamps down on small businesses and startups, other nations are capitalizing on this opportunity. Countries like Switzerland, Singapore, and the UAE are welcoming blockchain startups with open arms, offering clear regulatory guidelines and favorable tax environments. These nations are building the ecosystems that used to thrive in Silicon Valley, creating a new generation of globally competitive tech hubs at our expense.

Additionally, recent geopolitical shifts — such as strengthening the BRICS coalition — signal a challenge to the U.S. dollar’s status as the world’s reserve currency. China, Russia, and their allies are developing alternative financial systems and trade networks that reduce dependence on the dollar. Now, the U.S. faces a similar brain drain, as startups and small businesses relocate to environments where their ideas are nurtured and their work is valued. Innovation is becoming another American export, leaving our country with less economic vitality and fewer job opportunities in the sectors that define the future.

The Dire Need for Regulatory Reform

What we need now is leadership and legislative action that prioritizes and protects American innovation. Instead of enforcing a rigid, outdated regulatory framework, the government should seek to modernize laws recognizing and supporting the unique nature of digital assets, blockchain technology, and other new business models. A clear, consistent regulatory framework would provide the predictability and security that startups and small businesses need to thrive.

At the same time, the judicial system needs to protect the principles of fairness and impartiality. Judicial decisions that appear biased toward regulatory agencies do not simply enforce the law; they shape the environment in which business is conducted. When courts side with regulators without holding them to the same accountability standards, they enable overreach that harms our nation’s economic future.

The End of the American Dream?

If the U.S. continues on this path, we may well see the demise of the American Dream as we know it. By forcing small businesses and startups overseas, we’re sacrificing our role as the world’s innovation leader. Moreover, we’re endangering our economic future by putting regulatory barriers in the path of our most promising entrepreneurs.

The solution lies in restoring balance: protecting the public from fraud and abuse, while also ensuring that honest entrepreneurs have the freedom to take risks, build businesses, and contribute to a vibrant, competitive economy. Without that balance, we are dooming ourselves to mediocrity — and inviting the world to leave us behind.

In an era when American innovation is more critical than ever, it is time to call on Congress to legislate a new framework that ensures fairness, transparency, and consistency. With global competition increasing and the BRICS coalition challenging our economic dominance, we cannot afford to continue exporting our best and brightest talent.

The American Dream may be under siege, but it is not dead. By advocating for change and demanding accountability from our regulatory and judicial systems, we can revive that dream and ensure that the U.S. remains a beacon of opportunity, not just for Americans, but for the world.