I think the SEC should have been abolished yesterday, and there should be a totally free market in investments.
That would be better for everyone except the insiders who benefit from the cronyism of the current system.
That said, as a practical matter, nobody should be surprised that the SEC and US government go after those who flout it.
If you have a centralized group of people creating a digital token, giving a bunch to themselves, marketing it to pump the price, and then dumping it on the retail market without a registration statement and disclosing who owns the token, that’s like sticking your head in a crocodile’s mouth and hoping it doesn’t bite.
You would have to be pretty dim not to see the SEC would inevitably go after crypto. Anyone with their eyes open could have seen it coming from a mile away.