First off, why do you think the internet was such a runaway success? I argue a big reason was because it was unregulated and untaxed for at least 20 years. It's odd that Silicon Valley fools don't understand this when they claim to be libertarians and then vote for democrats.
Second, if you wish to regulate cryptos, how? The centralized exchanges seem to be the only way to put some regulations into place. What about a decentralized exchange? I guess you could try to force the controlling "foundation" to abide by some type of regs. But, what if all the voters (miners, stakers, etc), whom are dispersed around the world, not just US vote against it?
Third, there are already regulations on US citizens, i.e. people are supposed to be paying taxes.
But, as to regulating the currency itself? I am not sure how that is accomplished. And, what is meant by "regulating" it in the first place?