That's because prohibiting hate speech would be nothing but suppression of speech. If you use hate speech to incite a riot, that is a crime. Simply saying it is not.
Similarly, simply saying "i am an engineer" is obviously not a crime. Students do it all the time, despite not being licensed. Using it to lend credence to your ideas around traffic lights, however, may be a different story. I think thats the crux of the dispute.
That and the Shouting Fire thing are both directly harmful. Calling yourself an engineer, not a PE, without a a PE is not directly harmful, and the Constitution overrides state laws that claim otherwise. My money is on him in this one.
"Shouting fire" is a reference to Schenck v. US which has been overturned. It applied the "clear and present danger" standard. The current standard is "incitement to imminent lawless action" as articulated in Brandenburg v. Ohio.
The Supreme Court disagrees.