The analogy was about Binance's desire to be a broker, exchange and clearinghouse at the same time, something the SEC is specifically tasked to prevent (as far as I understood it). That doesn't have to do anything with the Blockchain
technology in general - and it seems reasonable to me that if Coinbase conflates those two things, they are trying to muddy the waters, nothing more.
A more specific analogy might go like this: Imagine some awesome new biotech startup that develops a completely new method to interact with cells - activate cellular receptors through long-distance quantum tunneling and gravitational nanolensing or whatever. Then it packages that tech into small, consumer-friendly devices which are programmed to activate a specific metabolic pathway in the wearer's brain: As it happens, that pathway is the exact same that is activated through heroin. Then they sell those devices to the general public without any restrictions.
One day, the FDA knocks on the door and says "hey guys, your tech is cool and all and we're sure it can trigger all kinds of amazing medical breakthroughs - but right now, you're using it as heroin with extra steps. And selling hard drugs for recreational use is forbidden."
To which the startup guys might reply "oh no no no mister, we're not in the business of making drugs, we're actually a long-distance quantum tunneling/gravitational nanolensing company. You see, this is such a new field and fundamentally incomparable with anything that came before it that, unfortunately, there are no laws yet that we would fall under. However, we absolutely do see the need for regulation, and we're willing to work with you and together arrive at a sensible set of guidelines that won't stifle the immense potential for innovation of that field..."
At which point the FDA guy would probably tell them to cut their bullshit and the startup might respond with some long rant about how a tyrannical FDA literally suffocates American innovators or something.