A regulator refusing to allow something isn't a regulator refusing to regulate. When people say the SEC refuses to regulate crypto, what they mean is the SEC r

A regulator refusing to allow something isn't a regulator refusing to regulate. When people say the SEC refuses to regulate crypto, what they mean is the SEC refuses to treat them like banks. That is, the SEC doesn't take the attitude "the general thing you want to do is fundamentally reasonable, let's work together to write rules that enable it". Instead, the SEC regulates crypto more like the DEA regulates weed: "we think what you're doing is bad, but we're probably won't arrest you. Still, don't take this as an endorsement".