What do you not understand about crypto law or policy that you wish someone would ELI5?

regarding the whole "code is law" argument, how well does this holdup if at all? i.e a scenario where users funds are drained at the benefit of a single individual that clearly wasn't the protocols intention to make a design as so

Not well. Code is literally not law. It's plausible that in some cases a court might find that all the users of code agreed to how it operated, so are legally bound by it, but that's an implied contract, not "code is law." For example:

Not well. Code is literally not law. It's plausible that in some cases a court might find that all the users of code agreed to how it operated, so are legally bound by it, but that's an implied contract, not "code is law." For example:
https://www.axios.com/2024/04/18/avi-eisenberg-convicted-crypto-defi-mango-markets