Regulation of the crypto market by the governments of various nations is the ongoing event these days. BUt more regulation means more control and interference by the government into the system. So this decentralized system tends to loose its operational autonomy when more n more people poke their noses in this business.
P.S.: The community would resent more control and definitely there would be a problem.
As you said, they can only control the market, not bitcoin itself. You will only surrender your control over your bitcoin if you give them your private keys. So let them regulate the market, remove the scammers but do not give them your control over your bitcoin.