He is mostly right, although I don't believe that US-based VCs would not invest offshore IF SEC put screws on "crypto" in US.
It is very easy for them to spawn a subsidiary on some island and proceed from there.
BTW, Fidelity already opened up some beta site for retail investment in something they call "bitcoin", but, apparently, you cannot withdraw such 'bitcoin", lol.
Fake bitcoin would be the next "thing" among banks, me thinks.