Well, poor them. Regulatory risk is just one of the risks of investing. Yes, it sucks that some of them are going to be the retirees of the world, but again, that applies generally to all investing. When you're making public policy, you have to put the individual aside and focus on the macro impact.

Now imagine all the value and money-making opportunity created for those investors by having a healthy and active competitive marketplace.

You could make the same argument about any company breaking laws and regulations or at least operating in grey (eg. AirBnb, Uber,...)