It's possible for them to frustrate it though. If they see and understand the opportunity, then that is substaintially different to them seeing some random risk from something new they don't understand.

Key to wider adoption, will be that it's simple access. If you can walk to your local corner store and give money in exchange for the confirmation that transfers BTC to you, then that's a big difference from what we have now with exchanges that are rather a gamble to use.

If regulation is simply a requirement for KYC as people move in and out of fiat, then that's as expected. If regulation is instead made in error to pander to the concerns of ye olde banks losing market share, then that could be a real problem relative to what Bitcoin can offer the wider economy. The NY Hearings panel seem to have made key points and the questions asked were sensible, so I hope other regulators worldwide are becoming wise to what Bitcoin is beyond just currency|commodity.