Bitcoin will be fine at $20k or $2. Investors, another story...
Yes, the FTXs and people who use them will suffer, sadly
More regulation is needed
The same happened before FDIC insured banks, fake banks that would “hold your paper cash safely”
If crypto is going to be regulated all fees need to come out of taxes from crypto earnings. Otherwise it isn't paying its way. And since it isn't creating general goods for the broader market, the taxes of the broader market shouldn't be expected to cover it.