> they get money thrown at them when they go public, then they don't want to be held to the standards
We have the opposite problem. Companies are NOT going public. The regulations are harming retail investors by restricting access to large/new/profitable enterprise.
Regulation that claims to protect investors should pass a cost-benefits test. If private equity is achieving outsize returns by investing in SpaceX, Anthropic, Instagram or smaller less well-known private companies, while retail investors underperform and only invest in legacy companies like KO and OXY, this is a concrete harm that regulation is inflicting on the people it claims to "protect".
Companies are founded, reach profitability, exist for some years while returning capital, and then sooner or later die. It is an objective and well-known fact that companies are staying private for longer and longer, shutting out retail from participating. Is is up to the courts and regulators to do some soul-searching and identify which of their mandates are the most burdensome and most harmful and repeal only those. But the widespread sentiment here of "just dont go public if you dont want retail's money lol" reveals a striking ignorance about the last decade of well-known and successful companies refusing to go public, of third parties inventing various ways to give retail access to said companies and getting bid up to ridiculous premiums due to overwhelming demand.
"I think [privately traded company X that retail wants to invest into] is a scam"
Maybe, but generally the market has been more about allowing investors to allocate their own capital, not Gary Gensler allocating it for the good of the people and the economy.