If something doesn't fall under the SEC regulation, then they cannot use securities laws to prosecute. It's extremely clear.
Yes. Again, what is not clear is that bitcoin does not fall under SEC regulation. You've said nothing to prove that whatsoever.
The courts do not have the power to pick an SEC regulation and arbitrarily apply it to Bitcoin. It's either SEC regulated or it's not. No precedent is needed. Currently, Bitcoin exchanges fall under FINCEN as MSBs.
Enforcement agencies, not courts, decide when and how to apply regulations. Courts decide whether they acted legally after the fact.
What basis do you have to say "arbitrarily"? You have not even cited any law! What legal basis do you have to say that SEC regulations are not applicable? Hint: None so far. This is just conjecture on your part -- you are simply appealing to authority by attempting to state your opinion as fact.
Bitcoin exchanges fall under FINCEN regulation for the purpose of transmitting and converting money.
That is all. This does not mean that any and all actions taken by bitcoin exchanges are regulated and enforced by FINCEN. As you indicated earlier, a bitcoin exchange that engages in other types of fraud may be dealing with the DOJ, for instance.
The things that would make SEC laws apply are -- if someone had a Bitcoin fund and used it to defraud. Any equity fund is regulated by the SEC, whether it contains Bitcoins or potatoes.
Again, I understand this. But saying that the SEC regulates A, therefore the SEC does not regulate B, is illogical, on its face.