Regulations in the financial world are mostly created to set and keep a demarcation line between those with access and those without. Protection is in fact a barrier. Hotshots will always find ways to bend regulations in their favor, if they didn't draft them in the first place for their own benefit. Remember some news recently about some of the most prominent billionaires in the US legally not paying taxes for years?
And to be honest, for masses of people this kind of 'protection' is apparently needed. Because they don't know any better or they can't handle themselves in a real jungle and call 911 when the bear attacks.
What these people don't understand is that you don't have to be in the jungle yourself and be chased by all sort of wild scary animals, or get excited by the scent or the landscape as you walk through, and forget about the wild scary animals.
You can do that from your garden, while you ask somebody else who is trained to go into the jungle for you.
The difference - you exert self-restrain instead of being coerced to not do this or that through regulations.
We as a society have become very soft. I'd say we were programmatically driven to this point. Because we are easier to manipulate and unreactive against abuses.
When the bear attacks, call 911. But what are we supposed to do, fight it? Don't go in a forest where there are wild bears, or if you do, assume the risk and know how to get out of the situation.
You want to revolutionize the world? You want to support decentralization? Then become responsible for your own investments and take accountability for your own actions. Suck it up or act when the market contradicts your predictions, and stop asking the government for help! They hope enough normies and some interested parties (billionaires/corporations) will pile up wanting them to step in. And then they will quickly do it to "save the day" (or the unsuspecting normie from the big bad bear - just kidding, that will never happen).
Or do you want to keep gambling and then never ask yourself why you lost and only be mad at the world?
For the regular people who are in crypto but don't have the "investor gene", there are options. HODL long term, stake your tokens for a base ROI and other benefits if/where possible, avoid small caps or venturing all around the defi/nft space, or trust a part of your investments to a fund or more for passive income.