another prime example of when lobbying for regulation went wrong was in 2013 when they lobbied to get bitcoin legally recognised as financial currency. this opened the floodgates of allowing governments to then set rules on businesses and citizens that use bitcoin by their government
all for the 15minutes of media coverage to shout "we're legit"

if bitcoin remained under private property status, such as pokemon cards/antiques, businesses and people could have operated and used bitcoin more freely

though things like media coverage of big institutional businesses like blackrock getting involved in bitcoin beams a large neon sign that bitcoin is trusted as a great investable asset. what blackrock then offers is not actually their customers investing in bitcoin direct. its blackrock taking ownership of bitcoin and offering fiat "in cash" payments of share trading of a trust/entity that has bitcoin locked up as collateral for the shares

regulations are not really "consumer protection" regulations, but instead business customer policing/auditing.
heck regulations are not so much business policing.. again they are policing the customers of businesses. not the business itself

heck even this ETF drama is not so much about wanting to police the ETF applicant businesses.. its more about which ETF business can have best-use policies to police and scrutinise and secure the trades of its customers the best way to ensure reporting of taxable gains of their customers, whilst not offering tax shelter services for their customers