That BTC could work as a money system for the people and help people to devalue FIAT currency?
Bitcoin was never created to devalue the fiat. Satoshi stated it clearly that he created bitcoin to save as an alternative to fiat. If you don't like the fiat way, atleast you have another way to toe and if the bitcoin way is affecting fiat, it wasn't intended.
alot of people think/assume/hoped that regulations were about consumer protections to avoid centralised services facilitating illegal activities that can cause other innocent customers to be abused and lose value due to bad acts of the services
That's the concept they sold to us, little did we know that this regulation will have no specific direction. It could go against the centralised services more than the people.