Loopholes are "holes" and blind-spots in the law. A reduction in regulation involves opening more of those. It's not about making something totally unregulated

Loopholes are "holes" and blind-spots in the law. A reduction in regulation involves opening more of those. It's not about making something totally unregulated (in which case there wouldn't be a need for loopholes, as any bad practice would be fine). More about reducing the more targeted and detailed parts of regulations that prevent loopholes and keeping the "core laws" - that then have gaping holes and blind spots.