The recent fall of Ripple and the company behind it has demonstrated how fragile the whole crypto pyramid is. When "government regulation" came, the #3 coin fell like shit taking the whole market along...
Well, XRP is still #4 by market cap and quite a few traders now try to "catch the deep". It's still possible that XRP will undead back to some decent level. It now largely depends upon the outcome of the lawsuit between the "regulators" and Ripple company.
Actually, even if XRP will completely cease to exist tomorrow, it per se will not affect crypto market that much. Yes, some traders and investors will bite the dust, but crypto in general will be just fine.
Now let's imagine that tomorrow ETH will be near 0 USDT. Not only the gas price will be much more affordable, but the whole DeFi pyramid will crash taking shitloads of everything along. Well, fortunately, it's difficult to sue Ethereum. It's possible to sue Ethereum Foundation and Mr. Buterin personally, but it will not (or rather, should not) affect ETH that much.
Stablecoins are different. It's quite possible to sue the companies behind USDT, USDC, etc., and to seize their bank accounts. In this case, the USDT price will be near 0 USD and the whole crypto-market will crash...
Of course, I'm by far not the first one to raise these concerns.
Some smart guys promote decentralized stablecoins. Indeed, it's hard to sue DAI and friends. Though DAI and friends are not so "stable" as USDT and Co., they seem acceptable for the practical purpose of quoting a shitcoin's price in USD (or another fiat) terms. Also, it's possible that in the future some smart guys will invent better fiat pegging algos. As long as no actual fiat is involved, you can run your decentralized bucket-shop as long as you want. But, afaik, there's a funny anti-online-gambling rule in the US -- you can play at an online casino as long as you want, but you can't cash your winnings out.
Other guys suggest moving crypto companies out of the US (and the EU, for that matter). Well, even if Ripple company is already at the Bahamas, I don't think that the Bahamas will defend it against the US pressure. After all, what this tiny country can do against the US gov machine? Nothing. They might well "betray" one of their "clients" for the sake of others.
I suspect some of the US and EU guys think that the weels of law in China or Russia are pretty much the same as in the US and the EU. "Let's move it to China and the US government will not be able to sue it there". Yes, the US government hardly will -- but the Chinese government will. And a "sue" in China or Russia is not like a "sue" in the US or EU. In China or Russia the Ripple CEO would have probably been in jail already. There will be no paper shit, no court hearing muppet shows, the court will not give a fuck about what the defendant's lawyers say, and so on. When ordered to (or allowed to) kill a company, the next day the gov agents will come, seize the servers, block bank accounts, and take the whole team under arrest "for future investigations". The team may wait for those "future investigations" in jail, for months or even years. Mostly, "moving outside the US" into some exotic country will not make any company more stable and secure. Quite the contrary.
"So, what's the way out?", you might ask. Well, there's none, actually. Government regulation and all its joys is a matter of "when", not "if". Just relax and try to have some pleasure.
Or rather, everything will be just fine if you detach yourself from fiat completely. Trade crypto for crypto, work for crypto, travel for crypto, buy pizzas for crypto -- shortly, live in a world pegged to USD only algorithmically. Isn't it exactly what Mr. Nakamoto allegedly wanted?
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