That is why I liked stablecoins which were fairly decentralized as the original concept of Dai by Makerdao was. It was over-colateralized by Ethereum and people were free to engage with the smart-contract and issue as much stablecoins as they desired, as long as they had enough Ether to give as collateral, there were no centralized power and the smart contract was open source, for anyone to see and verify, it was a step in the right direction, but people preferred to rely on centralized Fiat backed coins instead, now we could be about to see the consequences of it...
Obviously exchanges and hot wallets will asked by regulators to comply and switch all the capital of their depositors to those centralized networks, without asking the owners of the tokens.