Unfortunately, we've reached the point where it's not so simple anymore. Sure, there are assholes who deserve to lose their money, and I had the same attitude about some of the past crashes of BTC.

Nowadays though, the crypto folks are running huge ad campaigns in mainstream media at least in some places (the ad campaigns were huge when I recently visited South America). The consequence is that innocent people who happen to be financially uneducated and perhaps a bit naive are sucked into this stuff, and it is our duty as a society to protect people from that.

Not everybody can be an expert in finance, and not everybody should be! That's the point of division of labor. That's why a moderate amount of regulation that protects non-experts against being taken advantage of makes some sense.