I disagree with two primises put forth in your article.
- "But as demonstrated in the case of Lawsky, regulators don’t always understand how their actions can suppress or inhibit innovation, especially from innocuous small businesses and startups."
and
- "which is designed to be decentralized and anonymous."
In the first case they absolutely understand that Block Chain is being used to expose their fraud. So it isn't a accident.
In the second case by having exactly the same requirements to operate in the Block Chain essentially the Block Chain is centralized.
If you think about the fact that the system is operating in fraud, you get that claiming the Block Chain is decentralizing when in fact it follows the same rules, Welll? Fraud is fraud and it doesn't matter what euphemism you use to disguise it.
The good news is that they meaning the agents of fraud cannot allow Bitcoin to disappear as that would lead to being held responsible for their fraud. This makes Bitcoin a relatively safe bet, as I can think of more than one neck that doesn't want a stretch.
In the mean time Block Chain can be used by the conscious to increase the standard of living.