The other regulation might be proof of origin of funds - like if you get a gift from a relative that you use to purchase a home and a mortgage for the balance. The bank issuing the mortgage has to ensure that you aren't bringing illicit funds into the transaction and laundering it via their mortgage service. Whatever that regulation is called could apply where they have to prove US firms aren't moving illicit funds around, etc.
It's very normal in finance to call financial offerings, lending, loans, etc. products.
Some DeFi products offer nice rewards even - like somewhere around 12% pa for more risky, but about 6% pa for low risk products.
We are far from close to mainstream usage and early adopters probably will benefit the most.
If I go to a bank I can get a loan for a car and use the car I'm purchasing itself as collateral.
Right... so pure speculation then with no underlying utility.
The USD, on the other hand, has no such algorithms, and so in the last year alone the USD was weakened with three trillion new dollars without any backing.
Regulating the USD would be a high priority, but realistically you shouldn't expect that to happen. There's more value, from the perspective of owners of real estate and other assets in letting the USD melt down, create a crash on a scale that has never been seen before and just take whatever you may still own in exchange for some food and water.
The slightly less serious analysis from a couple of years ago: https://m.youtube.com/watch?v=-j_CxQFziFU