I think the idea is that "more capable" participants tend to make money off of "less capable" participants. And there are a lot more of the "less capable" ones.

Unregulated capitalism. Regulation limits how much information/expertise disparity can tip the scales. It doesn't prevent it altogether (nor is that a constructive objective), but limits it so the distribution between the winners and losers ensures still reasonable outcomes for the loser.

All that's happening in crypto is the same exploitative games/vehicles that happened in other markets before regulation protected the least informed and least Machiavellian players from the worst outcomes. There's no real innovation in that respect.