I've always said that although crypto should be free of regulation, but financial services such as exchanges should. It doesnt matter if you have an exchange that lets users trade stocks, bananas, crypto, hats or whatever - the fact is the entity takes money from people, and that my friends, must be properly regulated.
I'm fine with unregulated exchanges existing, I just wouldn't use one for anything more than a quick currency swap. I'd like to see regulated exchanges also.