Yeah, maybe the long term is all good either way, but look at it from the view of an individual, or institution, trying to decide an investment strategy. It's like any product or service. Let's finance is like restaurants, and look at the example of a local McDonald's: Food has been fine, and if the manager screws up, there'll be another to step in and fix things, eventually. But lets say the manager really screws up and a bunch of people get sick. That a new manager will fix things isn't much consolation. And after a few days in the toilet, and fines paid for poor sanitation standards, and news plastered around about the issue, it's going to be a while. Now imagine there wasn't even a local health & safety team certifying and inspecting these things to begin with, and a new place opens up: It's exciting, edgy cuisine, equal parts delicious and daring. But there's no health & safety inspection. Heck, that's part of the excitement, they don't have to play by any set rules! So you might get an awesome meal, but its a dice role on which day of the week all customers will spend their time crapping their pants.

Now, in the world of large-scale personal finance and institutional investment, not many are going to risk redecorating the insides of their pants every few days. They're sticking with McDonalds, which may still cause some level of bowel décollage now and again, but in much safer, more predictable ways. I'm not saying that makes crypto a "fail", only that the next few months will really determine if it's going to be a future behemoth or a niche asset class that risk-tolerant portfolios occasionally take a piece of.

I think the issue is about transparency. Most of the economic models us laymen think about and use to rationalize our political beliefs rely on perfect information. There are valid libertarian arguments against regulations which restrict what actions a company can take but I don't think there are very good arguments against regulations which only require companies to publicize their internal workings.

>If they turn, someone will step in to take their place.

There's a lot of stuff going on in that 'someone will step in' though. How many people lose their money when CoinBase turns? Do quick movers get out with all their BTC intact and slow movers go bitcoin-bankrupt? 'Someone will step in' may be an assurance to the long-term future of crypto but it says nothing to the fates of many of the individual investors who currently hold that crypto.