When the Securities Exchange Commission decides that something is a security, it retroactively applies the civil and criminal compliance back to 1934 because it was always a security. I mean, you can argue it in front of a judge if you want, but thats how they established jurisdiction.
Same goes for discretionary tax law at the IRS
or any regulatory agency
I agree its a problem, but if you live your life under your version of reality it is easy to get railroaded in the dragnet