While valid, your points all seem directed to protecting people from themselves. Depending on the details it may be a very bad idea to invest or take investment at this level but who should be the one to make the decision? In this case I don't think the government should have a say.
And protecting startups. There are disclosure issues here that are much more risky for startups. For a publicly traded company to disclose a lot about its business is one thing... but such disclosures could kill a startup.
