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The question then becomes, how does crypto react?

Regulations means rules, in leaning more towards the negative because the sentiment towards regulations and rules has always been negative in my opinion.

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However, the rules and regulations will also allow bigger money to invest with more confidence.

True it’s offers a sense of security, however then the situation arises where now an investment becomes risky because one investor doesn’t know the sentiments of other traders.

Will they be willing to take the risk and invest because rules and regulations offer security or whether they make it hard for a person to invest and gain returns.

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It will most likely make it safer for big investors to enter. Though the returns will probably be smaller as there will be better price discovery as well.

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