"We're at a point right now where I think the SEC is sticking their heads into an area they don't belong," said Michael Terpin, founder and CEO of Transform Group, at TheStreet's Investor Boot Camp. 

Terpin added that meddling regulators have hampered investment in the form of initial coin offerings (ICOs) in the U.S. by offering stark regulatory threats. "I think that's a shame," Terpin said. 

But Vince Molinari, CEO of Templum Markets, vehemently disagreed. "I think what we have to be very careful of is our aspirational thoughts of what we think things should be versus what they actually are today," Molinari said.

The two drew extensively -- in one direction or another -- on the Howey Test, a test created by the Supreme Court for determining whether certain transactions qualify as "investment contracts."

More from Investing

Will Tesla Partner With Mercedes for a New Vehicle?

Will Tesla Partner With Mercedes for a New Vehicle?

Boeing Stock Will Be Back, Just Not Today

Boeing Stock Will Be Back, Just Not Today

Boot Barn Is Oversold So Odds Favor Two Steps Forward Before Renewed Decline

Boot Barn Is Oversold So Odds Favor Two Steps Forward Before Renewed Decline

Boeing Shares Slip Due to Ongoing 737 Woes

Boeing Shares Slip Due to Ongoing 737 Woes

Kohl's Quarterly Results Draw Debate Over Stock Selloff

Kohl's Quarterly Results Draw Debate Over Stock Selloff