Not sure the regulation is per se bad, the more they are treated like Banks the more the attackers get the "trust" to the larger audience that they are comparable and vetted alternatives
The council referred questions to the Treasury Department. Treasury spokesman Dan Cruz said in an email that the department has followed developments in alternative lending since a 2013 Treasury event where both Lending Club and the small-business lender OnDeck made presentations. He said that the department is seeking to "better understand the potential for online technology to expand access to capital for small businesses." "More data is needed to fully understand how these lenders and their products compare to traditional banking products for small businesses," Cruz continued. "While online marketplace lending for small business is still relatively new, it does appear to be providing new options for small businesses to access capital."