You wildly overestimate how good most people are at evaluating risks. This isn't a couple hundred bucks over a weekend in vegas we're talking about, it's peoples' life savings or retirement accounts or childrens' college funds.

If given the opportunity to invest in something with potentially extreme returns and poorly represented risks, many people will take it either because they don't understand the risk involved or are not very good at internalizing the probability that they lose money. Just look at the ICO scams that abound today or the 2008 financial crisis.

While massive deregulation is nice in spirit and would theoretically allow people more financial freedom, I can't imagine it being viable (at least without a ton more compulsory financial education).