Their risk profile is basically zero.

I doubt (nuclear) regulations are stifling much innovation here.

certainly not zero: fusion reactors still contain a decent amount of toxic materials, some of which radioactive, and when working make all kinds of highly radioactive elements inside the structure of the reactor. Probably less of a risk than fission, though (it's pretty unlikely a failure will result in an explosion or runaway reaction which spreads those radioisotopes far and wide).