Massive financial scandals are widely viewed as a failure of central regulatory institutions--particularly the Securities and Exchange Commission (SEC). In The Advantage of Competitive Federalism for Securities Regulation (AEI Press, December 2002), Yale Law School professor Roberta Romano presents a revolutionary reform proposal: the replacement of centralized securities regulation with a competitive federalism arrangement. Under such a regime--akin to our existing system of corporate law--irms would choose to be regulated exclusively by a state, the SEC, or another country. Over time, Romano argues, competition would compel regulatory authorities to adopt legal arrangements and protections that empower and protect investors.