Firmer laws surrounding digital currency in the foreseeable future will be adopted, not just in China.

Its not necessarily a bad thing, it gives BTC some credit/legitimacy and as explained will not be adopted as part of the traditional banking service.

It was never intended to be anyway.

However, the market will react and my prediction is the BTC will drop to hit mid $400 USD in next 48 hours.

May be short lived, so perhaps a good time to buy a few.