Not banned. In addition to the Chinese lidars I mentioned, the Valeo Scala on Audi cars is 905 nm, and then there are also Ouster (865 nm), Innoviz (905 nm), Livox (905 nm) etc. The large spinning lidar on top of the Waymo Jaguar I-Pace is also purportedly 905 nm, although in the past they also had a swivelling 1550 nm lidar in the dome of the Chrysler Pacifica cars (situated just underneath a smaller spinning 905 nm one).

The eye safety threshold for 850/905 nm is a lot lower than 1550 nm, so they output way less power, but the much better sensitivity of silicon sensors makes up for it partially. You can also squeeze out more range using clever signal processing and a large optical aperture (which allows you to output more light, but since the light is spread out across the aperture, the intensity doesn't exceed the threshold). Typically, the range of 850/905 nm lidars is less than that of 1550 nm lidars though.

On the bright side, due to lower power, there hasn't been any instances (to my knowledge) of 850 nm and 905 nm lidars damaging cameras, whereas at least two different 1550 nm lidars have been known to destroy cameras (Luminar and AEye).

On the Luminar lidar website [1] they proudly advertise "1,000,000x pulse energy of 905nm".

[1] https://www.luminartech.com/technology