As far as regulations is concerned, it's actually too much and too little.
Too little in that overnight exchange operations are prone to shutdowns due to hacking, but too much in that regulations put up needless barrier to entry such that more exchanges exist outside the US than exist inside.
Alternately, the regulation is just distributed to the wrong places. Certainly there's a ton of regulation to go around, and a lot of it is insufferable, but somehow we didn't have enough regulation to stop the rampant greed and stupidity that caused our most recent financial crisis.
Too little in that overnight exchange operations are prone to shutdowns due to hacking, but too much in that regulations put up needless barrier to entry such that more exchanges exist outside the US than exist inside.