It's a basic regulated market. Because it's so easy to rip people off with financial products (ponzi schemes etc.) the SEC requires you to register a security i

It's a basic regulated market. Because it's so easy to rip people off with financial products (ponzi schemes etc.) the SEC requires you to register a security if you want to sell it to retail. The registration is quite simple but just ensures they've written in black and white what they're claiming to sell. These regulations exist as a direct result of fraud and shenanigans in the past. All that crypto is saying is "Oh this is something new so it's not covered by regulations", but that doesn't stand up to much scrutiny -the business being conducted may be different, but the financial aspects of these products are fairly standard and come under existing regulations.