Problem with regulation is that the term itself is ambiguous. What does it mean, who will do it, what are their limits and on what authority do they act?

I am not familiar with this specific crypto, but when I am offered to join a business that pays 19% in USD, I immediately know it can not possibly not fail. Regulations or not, you can't offer such dividend without major risk.

Then the subject of jurisdiction comes up. Who issued the tokens? If it is a USA company or person, it is one story, and they are likely already subject to some regulations. If it is an international community like ethereum, its another story. USA can probably ban it's distribution in USA, but not regulate.

Then, why would the regulations have to be mandatory? Organizations can voluntarily approach SEC and ask them to regulate the crypto they are about to issue. Submit to the appropriate rules and be an investor grade business. No new laws are really required for that. This way you could have trusted that if Luna fails, someone would go to jail. It's just wouldn't have been 19% dividend in that case, following rules comes with a price tag.