Crypto is held back by its own stupidity & inefficiency - the system self-regulates well enough.
The only thing a blockchain is good for is assets that fully live on the blockchain for which the source of truth is the blockchain itself - like cryptocurrencies.
Putting NFTs, video game/metaverse avatars, real-world assets, etc will never work; it's at best a very inconvenient, inefficient database replacement, and at worst a scam.
This is something few have realized. Crypto guarantees can only ever extend to things that are wholly represented on-chain, and that's basically just cryptocurrencies. As soon as the chain reflects the real world it's at the mercy of the correct data being entered, or reality not changing around it.
And this means pure cryptocurrencies, backed stablecoins do not offer any of the crypto guarantees either since they are representations of assets held in trust that can be seized.
For a system to be trustless, decentralized and permissionless it must be entirely trustless, permissionless and decentralized. It's not a gradient, it's a step function. Once anything creeps in, all guarantees are void.
The only thing a blockchain is good for is assets that fully live on the blockchain for which the source of truth is the blockchain itself - like cryptocurrencies.
Putting NFTs, video game/metaverse avatars, real-world assets, etc will never work; it's at best a very inconvenient, inefficient database replacement, and at worst a scam.