In the midst of all the self-pity, prosper failed to mention anything about the actual bagholders, the reason the SEC cares about prosper in the first place
"I'd really like to see Mary Schapiro out at Stanford, at Harvard, encouraging start-ups," Larsen said
"The worst kind of regulation is regulation that puts up huge barriers, kills the technology promise and at the end of the day didn't protect either side," Larsen said.
Posting the disclosures on the SEC's website also raises privacy concerns, the company said.
Such regulatory confusion, Larsen contends, is symptomatic of a deep divide between Washington regulators and Silicon Valley businesspeople. A lack of understanding of technology- related firms has discouraged innovation in the financial industry at a time when it may be needed most, he said.