Unregistered securities are legal, you just can't sell them to the public. That is one possible outcome for crypto tokens - you could still own Ethereum, and one individual privately selling some to another individual would be legal, but companies like Coinbase wouldn't be allowed to sell it to the public.
No, if you want to sell some crypto to a friend of your, that's fine. I don't know why localbitcoins shut down, but it's perfectly consistent for "facilitating transactions at scale" to be illegal while "doing a single peer to peer transaction" is legal.
That's how unregistered securities work, right? I am allowed to buy half of your small business, even though it isn't registered with the SEC. That doesn't mean you're allowed to sell stock in your small business and advertise that on the internet.
Great, now prove crypto is a security. They haven't done this yet. I'm sure some fall under that definition, but some of the big boys, especially ETH, are at least ARGUABLY not, and the SEC simply hasn't done enough homework yet.
