New York State licenses crypto companies.[1] There's a list of the licensed companies on that page. It includes Gemini and Coinbase.

A crypto company could set itself up as a stock broker/dealer. Robinhood has done that.

There's clear legislation. It's just that the marginal players don't like it. They wouldn't get past the initial requirements.

[1] https://www.dfs.ny.gov/virtual_currency_businesses