All the better for shorting then. But then I don't see how regulation has anything to do with how options are priced, unless it's to do with margin. Even then, options need shorts otherwise longs cannot buy so there can't be a market.
If you sell an option, call or put, the absolute maximum that you will earn will be the price that you sold it for aka premium minus commissions. You will NOT earn more than that; there is no "plus more". If the market moves against you that you have to close the position at a loss or worse get assigned, then you will lose more than what you sold the option for. So in option shorting, there is no "plus more", only "minus more" but you get money upfront, thus giving the impression that it's "income earning".