> can you really blame people for investing

Yes, you can. You don't have to dig very deep into the crypto world to realize that a lot if not most of the participants have are not plain ol' honest folks making a big ol' mistake giving their hard-earned savings to a slick-talking salesman. They are conscious participants in what they know to be a get-rich quick scheme. They know it is shady, and they don't care, because they think they're going to get out before it crashes. They're motivated by greed, not innocence.

You can recognize this and still support regulation of the industry. One of the big reasons you need regulation is to protect people from their own stupid greed.