One of their jobs is to protect consumers from unregulated securities.
The earlier they act, the better, and right before IPO is the most impactful time they could intervene.
> In this case they would’ve been content with the disclosure that the entire business was at risk of being regulated
They don't have to do it, but they could make that risk disappear and it would be very good if they did so. So I wish they did have to make those decisions, unless there's some huge downside.
In this case they would’ve been content with the disclosure that the entire business was at risk of being regulated, which is what’s happening here.