Exactly. No regulator has ever actively worked towards putting themselves out business. If crowdfunding were to succeed then people might start to consider why

Exactly. No regulator has ever actively worked towards putting themselves out business. If crowdfunding were to succeed then people might start to consider why we have all this regulation, on the other hand if the SEC structures the rules such that only scammers make use of it then they can say "we tried this and it was a disaster so it is time to bring in more regulation".