How can a corrupt system brings a transparent regulation to the crypto space?
It cannot and does not plan to. The aim hf regulation is to be able to control the crypto space as the banks have done with other financial systems.
I think that this regulation is a FAD, the aim behind this regulation is not about saving mankind from crypto rug pulls, I think the plan is to squeeze the life out of crypto because of the attention its getting.
Same with the save the planet narrative used to attack Bitcoin mining. It's all a means to gain more control over Bitcoin and cryptocurrencies.
If anything needs regulation, it is CENTRALIZED EXCHANGES only.
Centralized exchanges are regulated by default and have to comply with the KYC and AML rules of the authorities.