Keep in mind that you can't use the current market state as an argument. So far bitcoin market has been very tiny despite all the growth it had and prone to manipulation which is why the "crashes" happen. In a bigger market with mass adoption it won't happen like this ever.
The reason why the regulators have been reluctant to give the green light to digital currency all the way is because they are worried that the digital currency market will be manipulated and become a tool for certain institutions and individuals to plunder everyone’s wealth.
This is a stage where Bitcoin must go in its growth path. I personally think that the essence of Bitcoin's decentralization is to establish a balance and trust mechanism. I know a principle: Existence is justified, not without reason.