I don't want the SEC involved in crypto, at all.
Hurting the market is no different from hurting investors because bad practices that hurt one investor have a chilling effect on other investors' activity. Moreover, regulators don't have to clear a "does this hurt the whole market" test before taking action. For example, I know a guy who was running a business at an investment bank and got in trouble with FINRA for trading through NBBO on a very small order (retail sized).
The crypto market has grown to a size and role that affects the greater economy. We see that in so many ways, not only due to the holdings but also because different economic participants are catering to miners and setting up payment options for holders of crypto. It's no longer a cute side project.
While you could make plenty of argument that the SEC should do more, it doesn't make any sense that it should do less.
Lots of folks will lose a lot of money in cryptocurrency schemes in the next few years. We desperately need more regulation.
With people making fortunes or losing everything based on one dude's mood and a single tweet.
The SEC and other's exist because of the Robber-Baron's of old... I'm no "Regulation Hawk", but it does seem silly to allow this nonsense to continue.
Buying and selling gold is highly regulated. What makes you think crypto shouldn't be similarly regulated, even if it's only to ensure that taxes get paid and exploitative schemes get busted?
Surely you can recognize the benefits of government regulations in lopsided markets where small participants lack either the power or the information needed to keep large participants honest.