Final answer:
In response to the GameStop situation, regulators have scrutinized the market but have not enacted specific new legislation. Hearings highlighted systemic issues while questioning existing regulatory measures. Despite regulatory expectations set in the 1990s, these did not prevent the events concerning GameStop or the 2008-2009 financial crisis.
Step-by-step explanation:
The regulatory responses to the GameStop situation, which involved significant price volatility as individual investors coordinating through social media platforms bought shares to counteract short selling by hedge funds, triggered scrutiny by regulators and lawmakers. While no specific legislation was passed immediately in response to the GameStop event itself, hearings have been held to assess the adequacy of existing market regulations, the role of social media in the stock market, and the practices of brokerage firms and hedge funds. The Securities and Exchange Commission (SEC) is looking into the matter, and some brokerage firms like Robinhood faced regulatory pressure, particularly regarding their decision to restrict trading during the volatility.
After the 2008-2009 recession, laws from the 1990s were scrutinized since they demanded bank supervisors to make their findings public and act promptly upon discovering issues, yet they failed to prevent the financial crisis. Critics questioned why regulators did not anticipate the banks' weaknesses earlier. However, these regulatory responses were based on the banking sector and are separate from the regulations or responses that may arise from the GameStop trading event.