It seems people here aren't familiar with banking regulations, so I advise them to read the following:
https://en.wikipedia.org/wiki/1933_Banking_ActJust as I approve those regulations on banks, I wish to get the same on exchanges. It would be good for us, as it would leave simple exchanges unregulated.
If you really want to see how stringent the regulations got, see what was passed after the housing market crash in 2008. You would be surprised at how much banks are able to get away with knowing they have federal regulators that will jump in if they need liquidity. As of March of 2020, U.S. banks literally can loan/invest 100% of depositor funds through the fractional reserve banking system -- they don't need to keep a single cent of client funds on hand. Doesn't sound like they're highly regulated with that type of freedom.
Be specific, what exact regulations are you suggesting? Establishment of an FDIC type insurance program?