This will be known as Rule 506(d).This new rule will disqualify convicted felons and "Bad Actors" (persons that have been convicted of, or subject to a cease and desist order, injunction, disciplinary order, etc, issued by certain federal financial regulatory agencies or the postal service) from claiming a Rule 506 exemption.Disclaimer:You are responsible to check with and follow current SEC laws.

Sure, there are always going to be some bad actors out there, but the regulation allows those bad actors to be penalized and forced to improve or leave more easily than if it was just a free-for-all.Finally, I also don't mind regulation designed to impede a large-scale commercialization of STRs.  

I'm reminded of one story about Oscar-winning actor, Sir Anthony Hopkins.

Fleecing all the locals for $1400+/month for a 2 bedroom apartment is like taking candy from a baby..  

From 3 feet and below, the walls had pieces of candy and sticky stuff.

I've also known state actors to overstep their authority into illegal activities, too.Even in Texas, legislators and TRELA (the licensing agency) have been tinkering with the definition of what it means to "broker". 

It is equivalent to leaving one's hometown and heading off to LA to become an actor.

Some are just bad actors but many companies feel they have to market this way because otherwise the advertised returns look bad in comparison and they lose customers so its not always the TK being a bad actor.

These victims have two choices, learn real estate and straighten up their act or continue as the gurus and the scammers tell them. 

The actor John Travolta had a home in an afflluent aviation fly in community there in Daytona.