It can do both and this is how. If you had the carb after the regulator, fuel comes in and then keeps going, any excess pressure is sent back to the tank. So theoretically, both sides of the regulator are at the regulated pressure because the bleed off valve prevents the pressure from building up. By controlling the pressure coming in, it is able to ensure the carb out is at that pressure. So if you put the regulator after the carb, it does the same thing. It keeps the pressure coming in constant, any build up is bled off. You can't have 60 psi coming into the regulator, 20 psi going to a carb and the excess 40 psi going to the tank and have it that way as a constant. Once you bleed off pressure, it takes it out of the incoming fuel. So you would have 20 psi coming in, 20 psi going to the carb and 0-1 psi going to thank (or whatever the differential psi is that activates the bleed off valve). In order for pressure to increase, there has to be a reservoir or restriction somewhere. It doesn't just magically happen. The fuel pump has to build up that pressure in the line. With a truly unrestricted fuel pump, the fuel pressure would be 0. By unrestricted, they mean straight to the carb. Any kind of pressure can only happen in a closed system, be that boost, fuel pressure, air pressure, cylinder pressure, etc.