In this environment I think this is a huge success for cryptocurrencies.
A lot of bad hype is going around in social and regular media and these influence people more than you think. Right now less than 1 % of people have interaction with cryptocurrencies and only a small percentage only know what they really area. Even JP Morgan's CEO is acting like he does not know the power and capabilities of blockchain technology and trying to undermine it. But if you look at JP Morgan's investors, they do not care about what he says about Bitcoin and still ask the firm to buy more for them.
These speculations mostly affect average people who does not have time or resources to do their own research and try to grab any piece of information they hear on mainstream media and act on it .
I believe anyone who does their homework and do research on blockchain and cryptocurrencies would see the benefit and rewards of such system.
Anyway, my point is this is human nature. Any good news about Bitcoin is good. We, as people, are lazy and mostly like to act that we have enough knowledge about any favorite topic discussed.
Regulation is good. It gives people confidence. People think if Bitcoin is something governments recognize and take action to regulate it and the firms dealing with it , it must be something good...