I've given this a lot of thought and the only thing I think regulation will do is force KYC for tax and tracking and to prevent opportunities for the poor. Beyond that, there isn't much effect on the average user that decentralization and anonymity can't fix. Hopefully, the masses will realise they have a choice to police themselves or not.
I think it's important that people start to create different digital identities from their physical one. If people did this, it would be so powerful.