What does regulation look like?

As some have pointed out, regulation seems to be an increasing barrier between us and mass adoption. The idea that large corporations will utilize cryptocurrency in the future is forced two steps back every time an exchange goes insolvent, every honeypot, every rugpull, etc.

Some in this very subreddit are calling for regulation sooner than later so as to enable crypto to reach its full (intended) potential. I tend to agree and whilst some projects (read Polygon) have made serious inroads in securing partnerships (even in the bear market), many others are likely to be waiting until the cryptocurrency space is adequately regulated before taking the plunge. This, whilst frustrating, is understandable since we have seen a number of reasons for regulation (FTX, Luna, etc.).

This begs the question that the title implies, what does effective (and by extension beneficial) regulation look like?

How does it make the community safer without sacrificing the core tenets of cryptocurrency (privacy and control of one's finances)?

I, for example wonder, how a project like Monero survives. Touted for its privacy how does regulation effect holders/investors?

Are we seeing the start of the crypto reg-aissance already with how the SEC is targeting BUSD?