It’s not about regulations or not — it’s about the RIGHT BALANCE of regulations.
Too LITTLE regulations (like in crypto now), it’s a wild-wild-west-free-for-all, which is bad. Too MANY regulations and it’s a burden and chokes innovation because of the paperwork and compliance costs that are placed on the financial system. Larger financial firms can handle the costs associated with increased regulation, but smaller firms drown in the associated costs and paperwork when there is too much regulation.
Again, it’s not about regulation, it’s about the right balance of regulations.