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gwern comments on Open Thread for February 18-24 2014 - Less Wrong
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Though prediction markets have their potential problems, this could be the first in a long series of ever better decentralised prediction markets. I wonder what the legalities will be, similar to how Intrade got into trouble with the US government over regulations regarding commodity derivatives.
Who do you sue? :)
There is always someone to sue. Maybe the SEC argues that anyone who runs the client is offering services that need a licence.
Then it will be hidden behind Tor.
Maybe the SEC argues that running the TOR client is probable cause.
(Several iterations of "But what if" later...)
Maybe someone rules that encrypted or obfuscated communication is probable cause.
(I don't think this is likely, I just wanted to skip to the end of this line of thinking)
...actually, I wonder if anyone's tried to engineer a distributed steganographic cryptocurrency.