The only way for crypto to win is to implement privacy and anonymity in a way regulators cannot prevent, such as privacy coins. Btc and Eth relying on mixers is a flaw which regulators will exploit to their advantage.
Also, Ethereum could adopt privacy by default some day, via their proposal process.
It's fascinating to watch regulators talk about "bitcoin" and "ethereum" as if they're "gold" and "oil", unchanging commodities that just need to be categorized and dealt with appropriately.
Ethereum is totally publicly visible today, but it does not need to be that way tomorrow. These are living projects.