I think there will be other ways to build "consumer confidence" without relying upon promises from easily corruptible centralized entities who have routinely engaged in moral hazards at scale for the benefit for a few actors above and beyond other actors.
If those centralized entities declare those who try to mitigate against the financial risks in a decentralized fashion for those who do not willingly enter into such risks as illegal, "opt-out" is legally untenable and I will expect increasingly more conflict going forward.
I talked with a guy yesterday about how to build out the on chain swaps market and the current challenges with doing so, who worked for some of these deeply regulated mega banks trading interest rate derivatives for 13 years, and something tells me that these folks (you know, the grunts on the ground who are intimately familiar with how modern money really works and how it can fail on a day to day basis) are going to run circles around around career regulator <-> industry revolving door (and ultimately self serving like anyone else) bureaucrats in dealing with this conflict…