Isn't the whole point of bitcoin permission-less exchange? I've heard people talking about the "benefits regulation will bring." But once they regulate crypto won't it lose an enormous amount of its core utility? A distributed ledger that is forced to implement changes from politicians will never allow free exchange or permission-less transactions. What's the point of it then?

So what is the pro-regulation crowd thinking in 2023? Are they confused or am I the one who is wrong here? I would appreciate any perspectives.